43 jobs go in wake of haulier collapse
THE administrators of a West Lothian distribution company which has gone into receivership have confirmed that more than 40 jobs will be lost at its Bathgate headquarters.
MRS Distribution, based in Whitehill Industrial Estate, has fallen victim to the recession as it sheds 43 jobs, with a further 96 employees transferring to the group's other solvent company JBT, which also operates from Whitehill.
Employees at the county plant are angry after only finding out about the redundancies in a national media report, while, they say, management stayed tight-lipped.
One worker, who asked not to be named, said this week: "The management have known about this since the summer but didn't tell anyone so it's come as a massive shock to people.
"I'm lucky, I don't have a family and mouths to feed but a lot of the guys do. It'll be tough getting another job just now."
Executive councillor for development and transport, Martyn Day, said: "It's always disappointing to hear about employment moving out of West Lothian, however, I understand that some of the jobs are staying in the area.
"We all know this is an extremely challenging time for many residents. We will be doing everything we can to help these workers find new employment."
The sale of JBT in a management buy-out will safeguard 240 jobs.
Clanna, another of the group's companies, has also been declared solvent and will continue to trade but Inchmuir Ltd and York Place were placed in administration.
Representatives from KPMG were appointed joint receivers of MRS on August 6 at the request of the company's directors.
Blair Nimmo, head of restructuring for KPMG in Scotland, said: "Like many hauliers across the UK, MRS has experienced challenging trading conditions due to the economic downturn.
"As a result, market demand has contracted, leading to increased competition and lower margins in the marketplace.
"Although turnover has remained relatively strong, falling margins have reduced profitability, resulting in trading losses and cash flow problems.
"The directors took steps to reduce the company's cost base, but losses continued and the directors ultimately had no option but to apply to place the company into insolvency.
"KPMG is pleased to secure the sale of the profitable and cash- generative JBT business, which is hoped will emerge stronger following its purchase of the Scottish MRS business.
"This has protected the immediate future of 240 employees and has preserved a significant proportion of the Inchmuir Group operations from a difficult scenario.
"The second sale to Bibby has secured continuous employment for a further 103 employees. We are working with government agencies to ensure all other employees' issues are dealt with as best as possible."
MRS was one of Scotland's largest hauliers for large retailers including WH Smith and had an annual turnover of 28 million. JBT has five depots in Scotland.
The company's English interests have been sold to Bibby Distribution, with 103 employees transferring with immediate effect.
No-one from the company was available for comment.
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Monday 21 May 2012
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