Business Post to review suppliers: failed pallet firm born again using 'phoenix' manoeuvre
BUSINESS Post Group, one of the UK's biggest express delivery companies, last night committed to reviewing its "suppliers" in Scotland after an investigation by The Herald revealed that its main Scottish distributor is the product of a "classic phoenix" situation.
Weaver Pallet Express, based in Stepps, near Glasgow, was last week forced into liquidation owing creditors more than GBP1m. It was a supplier to Business Post's UK Pallets division.
However, The Herald discovered that Weaver, run by Bruce Jenkins, re-emerged under a different name, United Pallets Scotland, and is operating from a different address at Queenslie Industrial Estate.
When approached by The Herald with the information, a spokesman for stock marketlisted Business Post said: "When Business Post heard about what was happening with Weaver, their first priority was continuity, so in the shortterm they decided to continue with United Pallets. So it was a short-term decision to continue to service their customers in Scotland.
"However, they (Business Post) are conducting a full review of their suppliers in Scotland."
The news is sure to be welcomed by Weaver's creditors, some of whom have been put out of business by the company's collapse.
Glasgow haulier Chris Sagan last night told The Herald how he has been put out of business after being caught by the "classic phoenix" situation when Weaver, his only client, collapsed owing him GBP35,000.
Sagan, who ran Sagan Transport, has had to take on a window-cleaning job as a result of Weaver's demise and is angry with the manner in which it re-emerged as United Pallets with the same staff, and continuing with its work for UK Pallets.
Weaver was forced into liquidation on May 8 after Nyk Logistics, a creditor, filed a winding-up order at Airdrie Sheriff Court. Brian Milne, at Deloitte in Glasgow, was appointed liquidator.
Awell-placed source confirmed that the "majority" of Weaver's staff had, coincidentally, transfered to United Pallets.
Records at Companies House show that United Pallets was incorporated on March 20, 2006, and lists Alan Bernard Booth as a director, and Teresa McKeown as company secretary.
The source also confirmed that both Booth and McKeown are former Weaver employees.
The Herald contacted UK Pallets to ask about the collapse of Weaver, and whether there was a replacement franchisee in Scotland. UK Pallets gave us a Glasgow number and said this company was handling its Scottish distribution.
The number given identified the area of Glasgow where the distributor is based as Easterhouse/Barlanark – the right area for United Pallets, which is based in the nearby Queenslie Industrial Estate.
A receptionist at the Glasgow number answered the phone as "UK Pallets".
When we asked to speak to formerWeaver boss, Jenkins, a female staff member said: "He's not here at the moment."
Pressed on when he would be back, she said: "I've been told not to answer any questions."
It is understood that Jenkins is currently on holiday in Tenerife and returns to United Pallets today, although his status at the new company is not known.
Sagan was furious with those in charge at Weaver, saying: "They were using me and my two vehicles Monday to Friday, but have now gone bust owing me GBP35,000."
He said Weaver has tried to pull the wool over the eyes of its creditors, adding: "What we've got is the same people doing exactly the same thing for UK Pallets.
"So I'm out of business, that's me gone. I'm totally screwed. All these people have literally done is change places and changed the name.
"I've started my new job anyway. I'm now a window cleaner."
He said that as a sole trader – someone working without the personal protection afforded to a company with limited liability status – he stands to lose everything.
Sagan said he has an overdraft of GBP15,000, plus a GBP10,000 loan from the bank, while the only assets worth anything are his two trucks, which he estimates have a market value of around GBP8000.
