AAD Transport ceases trading after administrators fail to find buyer

Scottish haulage firm AAD Transport has ceased trading after administrators were unable to find a buyer.

Over the course of the past few weeks, a buyer had been sought for the business and its assets, but despite negotiations taking place with a number of closing date bidders it was not possible for a sale to be completed.

Administrators Begbies Traynor blamed “challenges within the existing business cost model” for not being able to complete a sale and save the jobs of 65 people employed by the firm.

A spokesperson said: “The administrators’ priority is to continue to provide all employees with all necessary assistance to advance their redundancy claims and work with the Redundancy Payments Service.

“We have also engaged with the department of Skills Development Scotland’s Partnership for Continuing Employment (PACE), to ensure all employees have the required support available to them.

“The administrators and their agents are in the process of realising the company assets to maximise value for the creditors of the company.”

Begbies Traynor explained that the haulage sector continues to have challenges, including high fuel and related costs, and often carrying legacy debt/tax arrears, while competition for new orders and work is fierce.

The net impact is low profit margins which will inevitably impact on cash flow, it added.