Case study: Navigating the wind-down of a national transport business

When a fast-growing transport and logistics company found itself in financial trouble, decisive action and collaboration with Jirsch Sutherland ensured an orderly wind-down and recovery of significant assets spread across the country.

Background: a rapid expansion hits a roadblock

The company, operating in the transport and logistics sector, provided haulage services to a wide range of industries. In addition to its general freight operations, it held dedicated contracts involving the use of prime movers and drivers assigned to specific customers. With operations spanning both local and national routes, it employed 16 staff and generated circa $16 million in revenue in 2023.

However, the business hit a financial bottleneck after expanding too rapidly, as Jirsch Sutherland Principal Andrew Mattinson explains: “The business had grown quickly to meet demand, but unfortunately, its cash flow couldn’t keep pace with the rising costs of trading. That kind of imbalance in the transport sector can be like trying to accelerate uphill in top gear – you’ll stall if the engine doesn’t have the torque to match.”

By the time the company was referred to Jirsch Sutherland, it had already ceased trading. The business was no longer viable and was placed into a Creditors’ Voluntary Liquidation (CVL).

Solution: a straightforward wind-down with strategic support

Given the business had stopped operating, the liquidation process was relatively straightforward – with no need to trade on. However, the logistics of collecting the company’s substantial fleet made this engagement anything but ordinary.

“There were over 100 prime movers and trailers scattered across the Southern Seaboard and into Adelaide,” Mattinson says. “It was like coordinating a recovery operation across a multi-state depot network. But thanks to the director’s cooperation and detailed knowledge of which assets were under finance and with which financier, we were able to streamline the process.”

Working closely with the director and the assets collection agencies, the Jirsch Sutherland team focused on the efficient collection and disposal of the fleet assets, liaising with various financiers to ensure that their interests were protected.

Results: assets recovered, liquidation underway

Whilst the liquidation remains ongoing, the majority of assets have been successfully collected and are in the process of being sold on behalf of the secured financiers.

Although no restructure or sale of the business was possible, the orderly wind-down has ensured that secured stakeholders are seeing the best possible outcome under the circumstances.

“This wasn’t a rescue mission – it was about bringing a large vehicle fleet safely off the road in an efficient and timely manner,” says Mattinson. “By approaching the matter methodically and working collaboratively with the director and asset financiers, we’ve ensured that creditors are in the best position they can be, given the company’s circumstances.”