News

Eastbourne-based Southern Pallets, a member of the UK Pallets pallet network, has ceased trading this week and will shortly go into liquidation.

However, the collapse has been tinged with controversy after rival network Pallet-Track swiftly occupied Southern's empty depot and  began running a subsidiary, Pallet-Track Logistics (PTL), from the site.

PTL has also taken on a number of Southern's staff, including the former owner and de-facto director David Dobbs. Although Companies House records show that Southern has been without a director since September last year following the resignation of Stephen Tripp, Motor Transport understands that Dobbs had been effectively running the firm.

However, Pallet-Track boss Nigel Parkes is admamant that PTL has not acquired either the goodwill or any assets, save the customer database, of the defunct firm.

He says that Pallet-Track was approached at the beginning of the year by Southern asking whether it had an interest in either acquiring or investing in the business to help stave off a financial crisis.

He adds: "After reviewing the company, we felt [it] did not demonstrate a viable proposition and declined. Some time later we were contacted again by Southern Pallets to inform us that they  were going into administration, asking if we would we be interested in looking at it again.

"We felt that there was not any great advantage in this, other than possibly the location they operated from. We made contact direct with the landlord and agreed to operate from the site."

Currently PTL is operating from the depot on a week-by-week contract, according to the site's owner.

A creditors' meeting has been scheduled for 9 July by corporate recovery specialist Jeremy Knight & Co where it is expected the liquidation will be confirmed. David Dobbs declined to comment.