Parcel firm BBX collapses
A PARCEL company yesterday made more than two thirds of its staff redundant after collapsing amid financial difficulties.
Blue Band Express Ltd, based at Ecclefechan near Dumfries, shed 450 jobs across the UK after calling in receivers. The remaining 153 staff now face a tense wait to see if a buyer can be found.
Director Bruce Cartwright said: ‘At present, the receivers propose to complete current contracts and close down the business.’
from The Scotsman, 26 April 02
BLUE BAND EXPRESS AXES 450 JOBS
RECEIVERS of Scottish parcel firm Blue Band Express made 450 of its 603 workers redundant yesterday – a day after the firm collapsed due to financial difficulties.
Receivers PricewaterhouseCoopers will close the parcel distribution company, after failing to find a buyer within 24 hours.
Receiver Bruce Cartwright, a partner of PricewaterhouseCoopers, said: “The receivers propose to complete current contracts and close down the business in an orderly fashion.”
Blue Band Express, which was called BBX until last week after a rebranding exercise in November, has staff working out of 13 depots throughout the UK.
The directors of the firm, based at Ecclefechan in Dumfriesshire, called in the receivers on Wednesday after deciding the company was not competitive and it was not feasible to sell as a going concern.
They said the firm’s non-automated distribution system and reliance on a labour intensive set up restricted its ability in a market where 24-hour delivery was essential.
Blue Band Express employed 150 people in Scotland and had an annual turnover of about £20 million. It also had a fleet of 400 vehicles.
Receiver, Cartwright, said yesterday’s 450 redundancies would have immediate effect.
He added: “These redundancies are regretfully a consequence of a buyer not coming forward to purchase the business as a going concern and therefore, it is not possible for Blue Band Express to remain open.”
Cartwright said the immediate priority was to carry out all current contracts.
Blue Band Express was founded in 1928 and has been owned by the Turnbull family since the 1950s.
In November last year, Blue Band Express had a management buy-in which ended months of speculation about its future.
The new management team, of Steve Brimfield and Ian Mackay, who had worked with the company in management consultancy roles, changed the firm’s name to BBX. It reverted back to Blue Band Express last week.
With the management buy-in, there was also the launch of a new corporate image.
At the time of the buy-in, Brimfield, the group managing director and new joint owner, said the company had been “slumbering for the last five years” but had a loyal customer base.
In an interview in November, he added: “The workforce must be one of the most experienced and dedicated in the industry and the network of 13 depots is well positioned to deliver a nationwide service.
“What has been lacking is a direction and focus. Ian and I intend to provide just that.”
Brimfield and Mackay had planned to offer small to medium users tailor-made solutions.
The new owners also planned a major joint venture and substantial investment in the fleet.
Brimfield and Mackay became involved with Blue Band Express late in 2000 and both had extensive experience in the logistics industry.
Blue Band Express has depots in Lockerbie, Airth, Shepshed, Royton, Birstall, Essington, Durham, Rushden, Teteford, Maidstone, Crediton, Cinderton and Totton.
