Begbies Traynor Group

Collapse of major customer brings down Newport haulier

Date Published: 11/02/2010

A South Wales haulage firm has gone into liquidation after its major customer went out of business.

All 28 employees at Ellis Morgan & Sons of Rogerstone, Newport have been made redundant.
The company ceased trading after its main client, Cwmbran-based sheet feeder Western Corrugated Ltd, went into administration in January. The directors estimate that the Western collapse cost it a total of £250,000.
Ellis Morgan & Sons’ creditors are owed a total of £1.46 million.
Liquidator David Hill from the Cardiff office of business rescue, recovery and restructuring specialists Begbies Traynor, said: “Ellis Morgan lost three major customers in 2008 but signed a contract with Western in April 2009 that would generate additional turnover of about £1 million a year.
“Ten drivers from Western transferred to Ellis Morgan and the company hired ten vehicles to enable it to make up to 19 deliveries a day.
“Sadly, Western Corrugated went into administration in January, leaving the directors of Ellis Morgan with no option but to cease trading.”
Ellis Morgan & Sons began trading in 1820 and was owned and operated by six generations of the same family.

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