Tag: Ernst & Young

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.