SFP Administrators Appointed by Dunchurch-based Logistics Firm

David Kemp and Richard Hunt of nationwide insolvency practitioner, SFP, have been appointed Joint Administrators of Phoenix Worldwide Logistics Limited, a Dunchurch-based company that provided logistics and warehousing services to customers worldwide.

Formed in 1990, the business significantly increased its fleet and turnover between 2019 and 2021 – largely driven by an increase in online consumer spending during the COVID-19 pandemic that supported an improved cashflow position.

However, the company’s fortunes turned in 2022 when it’s turnover significantly reduced, mainly due to the cost-of-living crisis which put a squeeze on consumer spending. The company continued to trade by entering into a Time to Pay arrangement with HMRC and payment plans with large creditors.

In March 2023, however, the directors took the decision to cease trading, no longer able to meet the business’ debt commitments. They sought professional guidance and ultimately decided to progress with the Administration. As part of the process, SFP is undertaking an orderly winding down of the company’s affairs.

David Kemp, Joint Administrator at SFP, says that the directors of Phoenix Worldwide Logistics made the right decision in pursuing administration: “Administration presented the best solution for the company, which had sustained a significant amount of debt while experiencing a decline in turnover.

“While many businesses are showing resilience in the face of the cost-of-living crisis, there are others that are going to be sensitive to shifts in consumer spending. Business owners are encouraged to seek advice at the earliest sign of trouble to keep as many options open to them as possible.”