News

Leicestershire-based HW Coates has acquired cash-strapped Scottish haulier McLellan's Transport. 

McLellan's went into administration on 23 May shortly after changing its name to MTL Realisations; its assets and business, including the rights to the McLellan's name, were bought by Coates on the same day. HW Coates has taken on all of McLellan's staff, including director Gordon McLellan, and the acquisition continues to trade as McLellan's Transport.

The administrator's  report shows that MTL Realisations encountered difficulties earlier this year following a move to a new operating centre in Stepps, near Glasgow in May 2007. Rising fuel costs and contracts that never materialised are cited by the directors as reasons for its cash crisis.

It ended with total debts of just over £1m.

UPDATE - Roger Brown adds:

Mark Brimley, warehousing and distribution director at Coates, says the problems at McLellan's were caused by a combination of potential contracts not materialising and soaring fuel costs.

He adds: "We believe McLellan's was a good operating business, unfortunately some decisions and circumstances turned it around the other way.

"We believe we can turn it back around - we've got a good customer base that works closely with us."

The expanded company now has more than 100 trucks, over 300 employees and 15 distribution sites around the country including  Cosby, Leicestershire Rugby, Warwickshire Middlewich, Cheshire and Newmarket, Cambridgeshire.

The Coates Group is a founder member and majority shareholder in the Hazchem Network.