Freshmove Logistics Ltd (08494648): administration
- Status
- Administration ended
- Administration began
- 2020-03-13
- Incorporated
- 2013-04-18
- Location
- London
- Industry
- 49410 Freight transport by road
Why it went into administration
- COVID-19
- Competition / price pressure
From the administrators' statement
Freshmove Logistics Limited (“The Company”) was incorporated on 18 April 2013 and commenced trading in 2015 as a food delivery company. The objective was “just-in-time” food deliveries to restaurants in and around the south-east of England. The company traded from rented premises in Milton Keynes and had previously operated as a partnership between the directors for approximately 11 years. The directors were Christopher Denoven and Peter McCaffery. The two directors were equal shareholders in the company with 50% each.
Initially the company was successful and turnover and profitability increased. However, the company began to encounter increasing competition from other food distribution companies and the directors were forced to cut margins. To improve cash flow, an invoice financing agreement was taken with Royal Bank of Scotland in 2016 before being replaced by another agreement with Metro Bank in July 2017. The company returned to profit in 2018 before declining again in 2019.
In mid-2019, in an effort to cut costs, the company entered into an agreement with another food distribution company. Unfortunately, this was not as successful as had been hoped and the agreement was terminated in October 2019. Mr McCaffrey left the company in November 2019 and Christopher Denoven acquired his shares.
Administrators' statement of proposals (2020-05-21) · Companies House register