UK parcels carrier Amtrak stops trading
Amtrak has suddenly stopped trading, leaving up to 900 employees facing redundancy and customers waiting for deliveries. It is the second time within two years that the company has hit financial difficulties and had to go into administration.
In a brief statement posted on its website, the company stated: “Netfold Limited, trading as Amtrak, went into administration on 22 August 2008 and has ceased trading. Should you have any parcel collection or delivery requirements, you may contact Business Post Limited, which will be happy to provide an alternative service.”
Accountancy firm Ernst & Young issued a statement saying that it was appointed as the company’s financial administrator by the directors of Netfold Ltd on August 22. One of the joint administrators from Ernst & Young commented: “Amtrak has found trading in the current economic climate challenging. It is a business led by consumer demand and as consumer spending power has weakened Amtrak’s business has suffered. We are currently assessing the financial situation of the business, and as a result the collection and delivery of goods may be disrupted.”
British newspaper The Independent reported today that customers were waiting for deliveries of goods such as wine, beds and televisions, and noted that the company has a contract to carry mail between government departments.
Amtrak, based in Aldridge, close to Birmingham, central England, operates two distribution hubs in Aldridge and Warrington together with 36 distribution depots across the UK, employing over 900 people and with a fleet of around 2,000 vehicles.
The company was originally founded in 1987 and was acquired by investment group 3i in 1998 which then sold it to a US investment group in 2006. Amtrak ended 2006 with turnover of around GBP 80 million, about 20 pct lower than 2005, and reportedly had financial difficulties late in the year.
In January 2007, it went into administration and was sold to a turnaround company Netfold Ltd. which said it was confident of securing the company’s future under a team of experienced transport industry managers. The strategy of focusing more on the fast-growing B2C sector would be continued, it said.
Earlier this year, Amtrak announced it was investing in 100 new Sprinter delivery vans after acquiring 100 Ford Transits and 18 double-deck trailers for linehaul transportation. It also said it was investing in IT to improve operational efficiency. “The new vehicles are part of our continued investment in the company as we build the business and expand the customer base,” said managing director Alan Jones at the time.
