News: Rotherham delivery firm downed by dispute
Rotherham-based logistics specialist Humber Services Ltd, went into administration following a dispute with a major client.
The firm, based at Wath, was established in 2018 and operated a "white glove" delivery service for furniture retailers.
Experts from business advisory firm Quantuma were appointed as administrators of Humber Services Ltd on August 1 2025.
Quantuma explained that the company was experiencing cashflow difficulties as a result of a client dispute and was coming under creditor pressure.
An update from the administrators said: "Although haulage and storage were the Company's primary operations, it later began supplying complete bed components on behalf of one client. Customer orders for beds were placed through the client and fulfilled by the Company.
"However, a dispute arose as a result of customer complaints, resulting in significant issues and customer dissatisfaction. Many customers refused to pay the client, and the Company decided to cease providing this service for this client. As a result, the client issued asubstantial counterclaim against the Company, estimated at c.£1m."
Advertisement
In June, the company ceased to trade and the business was transferred to connected company, HS Home Deliveries Ltd. In July a creditor presented a winding up petition against the company.
Paragon Business Finance Plc was the major creditor as Humber Services' ledger was subject to an invoice factoring agreement. The value of the Company's debtor ledger was £529,338 but administrators said that the majority of the ledger is aged and/or disputed and therefore the estimated to realise value is £76,771.
Unsecured creditors are estimated to be £1.2m.
Quantuma added: "Humber Services experienced cashflow difficulties following a dispute with a major customer, which resulted in a breakdown of the relationship, non-payment for services rendered and the receipt of significant counterclaims for non-performance.
"Following creditor action, the company was at risk of liquidation and the secured creditor appointed Quantuma to gain control of the situation on a more urgent basis than liquidation would have allowed."
Quantuma managing director and Joint Administrator Andrew Watling said: “It is extremely regrettable that Humber Services was forced to cease trading, due to a series of challenging circumstances. This was a sad ending for an established Company. As Joint Administrators, our immediate priorities have been to seek to obtain maximum value for the Company’s creditors.”
Images: Humber Services / Facebook
The firm, based at Wath, was established in 2018 and operated a "white glove" delivery service for furniture retailers.
Experts from business advisory firm Quantuma were appointed as administrators of Humber Services Ltd on August 1 2025.
Quantuma explained that the company was experiencing cashflow difficulties as a result of a client dispute and was coming under creditor pressure.
An update from the administrators said: "Although haulage and storage were the Company's primary operations, it later began supplying complete bed components on behalf of one client. Customer orders for beds were placed through the client and fulfilled by the Company.
"However, a dispute arose as a result of customer complaints, resulting in significant issues and customer dissatisfaction. Many customers refused to pay the client, and the Company decided to cease providing this service for this client. As a result, the client issued asubstantial counterclaim against the Company, estimated at c.£1m."
Advertisement
In June, the company ceased to trade and the business was transferred to connected company, HS Home Deliveries Ltd. In July a creditor presented a winding up petition against the company.
Paragon Business Finance Plc was the major creditor as Humber Services' ledger was subject to an invoice factoring agreement. The value of the Company's debtor ledger was £529,338 but administrators said that the majority of the ledger is aged and/or disputed and therefore the estimated to realise value is £76,771.
Unsecured creditors are estimated to be £1.2m.
Quantuma added: "Humber Services experienced cashflow difficulties following a dispute with a major customer, which resulted in a breakdown of the relationship, non-payment for services rendered and the receipt of significant counterclaims for non-performance.
"Following creditor action, the company was at risk of liquidation and the secured creditor appointed Quantuma to gain control of the situation on a more urgent basis than liquidation would have allowed."
Quantuma managing director and Joint Administrator Andrew Watling said: “It is extremely regrettable that Humber Services was forced to cease trading, due to a series of challenging circumstances. This was a sad ending for an established Company. As Joint Administrators, our immediate priorities have been to seek to obtain maximum value for the Company’s creditors.”
Images: Humber Services / Facebook
0 comments:
Post a Comment