News

E Pawson & Son had total debts of £3.5m when it collapsed earlier this year, according to documents just filed at Companies House.

A report issued by administrator The P&A Partnership at a creditors' meeting on 19 June reveals that the firm's problems began when its warehousing operations made significant losses, which "led to cashflow difficulties". The haulage side of the business had been "breaking even".

According to P&A's report: "Cashflow difficulties were exacerbated  when shares in Mill Transport were acquired in February 2007 for £1." It adds that Mill had been loss-making and eventually entered liquidation in April 2008. The report shows the company notched-up £2.4m of trade debts, with more than £100,000 owed to other transport firms.

Around £216,00 was owed to recruitment/driver agencies; £179,000 to fuel suppliers; and nearly £1m to its landlord. Given that the firm had a total deficiency of £3.2m, non-preferential creditors will never see a penny.

The full story of what led to E Pawson's demise may never be clear, as the directors of the Rotherham-based firm failed to supply a statement of affairs to the administrator and the last financial accounts submitted to Companies House are for the year to March 2006.

Mill Transport's last financials were also only up to June 2006. Meanwhile, brothers Michael and Richard Pawson are in the process of starting up again under the name Pawson Transport. 

At the time  of writing, Richard Pawson said it would be at least six weeks before "we will be running any vehicles" and would not be drawn on events about E Pawson's downfall.

An O-licence application is currently with the Traffic Area Office. He did add that the facts about Mill Transport in the administrator's report are "not accurate". The P&A Partnership was unavailable for comment.