News

Clitheroe, Lancs-based bulk tipper operator Barnes & Tipping has collapsed into administration barely a year after it was bought by the director of a Northern Irish haulage firm. Administrators from SF Plant were appointed to the 30-truck haulier on 5 March.

It had operated as a limited company since 1954 and had been run by the Wood family since the early 1990s. However, last year, the firm was acquired by Kevin Tinnelly, who owns Tinnelly International Transport in Newry, Northern  Ireland.

Although the company was profitable, according to its last set of abbreviated accounts (for the year to 28 February 2008), the way the company was acquired left it laden with debts and ill-prepared to weather the economic downturn.

In fact, Barnes & Tipping borrowed heavilly - principally in the form of mortgages and loans - to allow Tinnelly, through his acquisition company Regal to buy the company from the Wood family.

Documents registered at Companies House show that it was loaned £400,000 by finance firm Hermes Group to fund the buy-out under a chattels mortgage, effectively a debt of £550,000 once interest was taken into account, and was loaned £2.7m by Regal to fund the deal. In addition it sold one of its principle assets - its operating centre - to the Wood family for £350,000 and then leased it back.

Although a firm funding its own acquisition is not illegal, it a heavilly regulated practice and directors are required to sign a statement  promising that the company will not be financially damaged as a result.

In addition to the evident financial problems the company was also facing a disciplinary public inquiry in the North-Western traffic area on 27 March.

Tinnelly International Transport had previously had an application for an O-licence in the North-Western traffic area refused. No-one from Barnes & Tipping, Tinnelly Transport or administrators SF Plant were available to comment.