Haulage business liquidation advice

How to liquidate my haulage business?

If your haulage business is struggling, you’re certainly not alone. Insolvency rates among hauliers have been on the rise over the last couple of years, driven by soaring fuel costs, a global driver shortage and a flailing economy. Such is the convergence of challenges that some in the industry believe hauliers have never had it so bad. 

Given these pressures, it’s important that you can recognise the warning signs of business insolvency, as it brings a legal requirement to act in the best interests of your creditors. If you are worried about the finances of your haulage business, our licensed insolvency practitioners can provide urgent advice. We can explore company rescue options to keep you trucking or help you close your business in the right way.

What challenges are haulage businesses facing?

Rising energy costs, high inflation, spiralling wages and soaring interest rates are headwinds that all businesses are having to deal with. However, haulage businesses also have sector-specific challenges, including fuel prices that remain stubbornly high, a lack of qualified HGV drivers and rising vehicle repair and maintenance costs.

The fallout of Brexit is also causing problems for hauliers. Customs bureaucracy, delays at ports and the lack of harmonised standards and agreements are making life a misery for many hauliers and taking a toll on their bottom lines. 

If your haulage business is struggling, we can help you navigate a course through the financial problems you face. Whether it’s exploring emergency funding methods, restructuring its debts or liquidating the business if it’s no longer financially viable, we can provide professional advice and put practical solutions in place.

Liquidating your haulage business

If your haulage business is insolvent and no longer financially viable, liquidation is likely to be the best approach. Liquidating your business via a Creditors’ Voluntarily Liquidation (CVL) will protect your creditors from further financial losses and reduce the likelihood of allegations of misconduct or wrongful trading, which could lead to adverse consequences for you personally. 

To start the process, you will appoint a liquidator to take control of the business and market and sell its assets. They will use the proceeds to repay your creditors and close the company down. Any remaining debts will be written off. One of the key benefits of a CVL is that you could be eligible to claim director’s redundancy pay, which averages around £10,000 and can provide a financial lifeline while you consider your next move. 

Rescuing your haulage business

If your haulage company is struggling but the underlying business model is still strong, there are company rescue and recovery procedures that we can explore. We can look at alternative finance options to provide a quick cash injection or renegotiate your existing debts with your creditors to give you more time to pay. 

There are also formal insolvency procedures that could be appropriate. A Company Voluntary Arrangement allows you to consolidate your debts and repay them via monthly instalments over a typical period of two to five years. Alternatively, Company Administration could provide the time and space to restructure the company or negotiate a possible sale.

How we can help

Are you worried about the financial position of your haulage business? Then call us today for a free, no-obligation consultation. We’ll discuss your circumstances and provide tailored advice about your company rescue and liquidation options. You can also arrange a face-to-face meeting at one of our 100+ offices throughout the UK.