Overview:
Nationwide insolvency practitioner, Exigen Group, has completed the sale of the business and assets of STR Logistics Limited, an Exeter-based freight logistics company, securing jobs for 144 employees. Founded in 2002, the company offered services including home deliveries, pallet distribution, secure freight handling, contract management, and short-to-medium term storage. Following a buy-out, turnover increased from £2.9m in June 2020 to £6.7m in 2022.
Financial Challenges:
A combination of rising costs, fuel, wages, and vehicle parts shortages, alongside general economic slowdown, led to trading difficulties and creditor arrears. In December 2022, professional guidance was sought. Exigen Group conducted a marketing campaign to identify a buyer as part of a restructure, aiming to protect employees, maximise value for stakeholders, and maintain client services.
David Kemp of Exigen Group said:
“The impact of record inflation and other economic constraints placed enormous pressure on STR logistics, which sustained irretrievable damage as a result. The sale to Devon and Cornwall Logistics Limited was the best solution to achieving the preferred outcome: the retention of STR Logistics employees, maximised value for stakeholders, and ongoing services to the business’ valuable clients.”
Client Feedback:
Anthony Quinn, CEO of Devon & Cornwall Logistics Limited, added:
“Our new management team, improved corporate strategy and good old-fashioned excellent service will ensure this business can go from strength to strength. DCL will continue to trade under the banner of STR and is primed to be the delivery expert of choice for the Southwest, and beyond.”
Outcome:
Exigen Group’s involvement highlights the benefits of proactive professional guidance in protecting jobs, maintaining client services, and maximising outcomes for stakeholders in challenging market conditions.