The collapse of H. Parkinson Haulage can be traced back to a row with a former landlord, writes Chris Tindall.
The landlord claimed the firm owed more than £1.6m in repairs, according to its administrator. In early 2022, H. Parkinson – part of the HPH Group – vacated its Walton Summit industrial estate premises, before the landlord served notice that it owed £1,625,171 in dilapidations.
Dilapidation in English law refers to the waste committed by the incumbent for which a tenant is usually liable when he has agreed to give up his premises in good repair.
The haulier employed lawyers to challenge this claim, saying it was ‘unsubstantiated and overstated’.
The Preston company closed in August after more than 60 years of trading, offering haulage and warehousing services and covering the whole of the UK.
FRP Advisory said it also obtained an independent professional dilapidations report, which showed substantially reduced costs for the works and which resulted in the landlord knocking almost £1m off its claim.
However, in a report to creditors, the administrator said: “The uncertainty surrounding the dilapidations claim, combined with the fierce competition in the haulage industry and driver shortages, caused strain on the company’s cash flow, due to the reduced margins and increased driver agency costs which were at a premium.
“This resulted in the company recording a loss of £34,972 in the accounts to 30 June 2022.”
The dilapidations claim was later changed to a material loss claim of £700,000, but H. Parkinson Haulage continued to fight the amount, insisting it was incorrect.
FRP added that all offers to negotiate a settlement were rejected by the landlord and although turnover increased during 2023, its pre-tax losses deepened to almost £341,000, which piled pressure on its cash flow and credit facilities held with the bank.
This led to it falling behind with its creditor liabilities and when companies began threatening legal action and the material loss claim looked likely to continue rumbling on, the directors sought insolvency advice.
An orderly wind-down was found to be the only viable way forward, with a number of customer accounts and vehicles transferred to one of the associated businesses within the HPH Group, including 10 curtain-sided tri-axle trailers.
The Preston company closed in August after more than 60 years of trading, offering haulage and warehousing services and covering the whole of the UK.
Company creditors are estimated to be owed £2.8m.
