News

Barnett & Graham, with its sister firm, dealership Borderman (Trucks), went into administration in September leaving 98 staff redundant. The firm owed almost £2m when it shut its doors, but the creditors' report shows the administrators raised over £1.4m from the sale of the firm's assets, with another £100,000 for the assets of Borderman.

Mike Kienlen is a partner at the administrator, Carlisle-based corporate recovery and insolvency specialist Armstrong Watson. He anticipates these funds  will enable them to pay the "preferential creditors, which consist of employee claims in respect of unpaid wages, holiday pay owed and pension deductions made of the company in full".

Some money should then become available for the company's unsecured creditors.

According to the creditors' report Barnett & Graham had experienced trading difficulties over the past two years because of increases in fuel and payroll costs which the firm was unable to fully pass on to its customers. It concludes: "This had put pressure on margins and despite various cost-cutting measures the company ran out of funds." Local hauliers have taken over Barnett & Graham's clients - Kirkby Stephen-based TR Handley is handling bulk powder transport from the Corus plant at Shap.

North East Truck & Van has now taken over the Borderman (Trucks) MAN-ERF franchise.