Job losses as Youngs Transportation and North West Cargo fall into administration

Two additional prominent road freight companies, Youngs Transportation & Logistics and North West Cargo, have gone into administration, resulting in a considerable amount of job losses.

Amidst a challenging economic climate, cash flow difficulties, and global conflicts, Leonard Curtis, a director at his firm, highlighted the severe challenges facing the entire industry as “troubling”.

Appointed on 31 January, the insolvency expert took charge of Youngs and North West Cargo, a haulier acquired by Youngs in 2020.

For over half a century, Youngs operated, jointly employing approximately 250 staff across five locations in the South East, South Coast, and North West, with a collective revenue exceeding £40 million.

Licence records revealed Youngs operated 85 lorries, and North West Cargo managed 20.

The administration managed to sell a site in the North West, preserving a few employment positions. Further asset sales ensured some deliveries continued, aiding in recoveries, according to Leonard Curtis. Details on these transactions were limited at the time of reporting, but it was noted that two additional sites were closing, resulting in substantial job losses.

Cadwallader remarked on the significant impact recent months have had on the UK logistics sector due to persisting economic challenges in the UK and global disruptions to freight and shipping. These issues culminated in insurmountable working capital challenges for Youngs Transportation & Logistics and North West Cargo, leading to their administration.

Dane O’Hara, co-administrator, noted that despite extensive marketing of the group’s business and assets, a sole purchaser for the entire operation was not found. Nevertheless, through various smaller transactions, parts of this longstanding business were preserved. The team is also aiding the numerous employees affected by these administrations.

This instance of administration follows a trend among transport companies, including AAD Transport, Bridgetime Transport, WJ Capper Transport, WH Barley, Bomfords Group, Gwynedd Shipping, and HMF Services, all entering administration recently.

Cadwallader anticipates that the UK logistics market will face a challenging trading environment throughout the first and second quarters of 2024.

Russell Field

Russell Field is Managing Director of a contemporary marketing agency with clients in the haulage, distribution, freight and logistics industries. Russell holds a BSc (Hons) in Marketing and specialises in digital marketing and research.

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