Overview:
Exigen Group was appointed Joint Administrators of Cross Transport Limited, a Birmingham-based road haulage company providing services across the UK and Ireland. Established in 2010, the business operated a fleet ranging from small vans to 44-tonne articulated vehicles and employed around 120 staff. Despite years of strong trading, the company faced mounting financial pressures due to rising operational costs and sector-wide challenges.
Financial Context:
Escalating fuel prices, driver shortages, and increasing overheads put the business under unsustainable strain. These difficulties ultimately led the directors to cease trading in June 2023. Following this, Exigen Group was appointed by the company’s qualifying floating charge holder to oversee an orderly wind-down.
David Kemp of Exigen Group commented:
“Cross Transport found itself in an untenable position due to rising costs and other financial pressures. While it was not possible to save the business, as trading had already ceased, the Administration allowed us to take steps to protect assets and maximise recoveries.”
Sector Insight:
David added:
“From rising fuel prices to driver shortages, 2022 was a challenging year for the road haulage sector. With many companies operating under the strain of tight margins, we urge directors to seek professional guidance at the earliest signs of trouble. This can improve the chances of saving the business and securing the best possible outcome for both the company and its employees.”
Outcome:
Exigen Group’s appointment demonstrates the importance of early intervention and professional management in the face of sector-specific pressures, ensuring a structured resolution while safeguarding stakeholder interests.