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Jobs lost at courier firm in liquidation

SGM Distribution had experienced difficult trading conditions.

More than 50 employees at the courier firm have transferred to new work (Rui Vieira/PA)
More than 50 employees at the courier firm have transferred to new work (Rui Vieira/PA)

Sixteen jobs have been lost after a courier firm went into liquidation.

SGM Distribution, which has depots in Aberdeen and Letham in Angus, had been experiencing increasingly difficult trading conditions since expanding into the north east of Scotland four years ago.

Liquidators said the majority of the 51 employees have transferred to a new employer and a total of 16 jobs have been lost.

Liquidator Shona Campbell, of MHA Henderson Loggie, said: “Although the courier industry has seen significant growth on the back of the rise in online shopping, it is a fiercely competitive market and undoubtedly tougher for operators covering rural areas with sparse populations.”

The company, established in 2006, had a fleet of 47 delivery vehicles and is said to have counted national brands and local businesses among its customers.

Ms Campbell, MHA’s director of business recovery and insolvency, added: “The failure of a business is hard for a community and I am pleased that we have managed to save a significant number of jobs.

“I am now focused on winding up SGM’s business affairs efficiently and ensuring that all workers that have unfortunately lost their jobs receive their full redundancy entitlements from the Government’s Insolvency Service.”

PA

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