Business failure releases Nottinghamshire warehousing
More than a million ft2 of warehousing space is set to come to the market as Nottinghamshire logistics and warehousing firm goes into administration.
By Liza Helps Property Editor Logistics Matters
THE COLLAPSE of Carlton Forest 3PL could see four warehouses, two in Nottinghamshire and two in South Yorkshire totaling 1. 2 million ft2 of space come to the market through administrators Interpath Advisory.
According to the administrator Carlton Forest in common with several other companies operating in the transport and logistics sector, had been battling industry and wider economic headwinds, including rising costs, significant excess warehouse capacity in the market and decreasing storage rates.
“With pressure on the Company’s cashflow increasing, the directors sought to undertake a review of their options, including sale and investment options. However, when a solvent solution could not be found, they took the difficult decision to seek the appointment of administrators.”
Interpath Advisory managing director and joint administrator James Lumb said: “We are seeing a lot of businesses in UK logistics which are facing similar issues to Carlton Forest, driven by new warehouse capacity hitting the market over recent years, and the general destocking of the UK consumer economy as Covid-related supply chain disruption has subsided.
“Carlton Forest, like many of its peers in the market, had grown to meet demand and this has had the effect of increasing its overheads. Unfortunately, however, the race to the bottom on pricing and the loss of a key customer ultimately contributed to Carlton Forest’s inability to keep trading.
In the last year the industry has seen the demise of Knights of Old, Lloyd Fraser Group, Magnus Group Bomford and Youngs Transportation & Logistics to name a few.
Carlton Forest employed 90 people.
