Liquidators save jobs

Staff of failed courier firm switch to new employer

SGM DistributionLiquidators have saved 51 jobs at a failed courier firm after an undisclosed company agreed to take them on.

MHA Henderson Loggie was appointed liquidator to SGM Distribution which has depots in Letham and Aberdeen. The majority of employees have transferred to the new employer while 16 jobs have been lost. 

The business, which has a fleet of 47 delivery vehicles, has been experiencing increasingly difficult trading conditions since expanding into the North East 4 years ago. Established in 2006, the company offered tailored same-day delivery service throughout the UK and counted national brands and local businesses among its customers.

Shona Campbell, director of business recovery & insolvency, said: “Although the courier industry has seen significant growth on the back of the rise in online shopping, it is a fiercely competitive market and undoubtedly tougher for operators covering rural areas with sparse populations.

“The failure of a business is hard for a community and I am pleased that we have managed to save a significant number of jobs. I am now focused on winding up SGM’s business affairs efficiently and ensuring that all workers that have unfortunately lost their jobs receive their full redundancy entitlements from the Government’s Insolvency Service.”

Leave a Reply

Your email address will not be published. Required fields are marked as *

This site uses Akismet to reduce spam. Learn how your comment data is processed.