Shortage of drivers sees business fail

DRIVER shortages have contributed to the collapse of a £167 million turnover food distribution business, putting more than 400 jobs at risk.

Administrators from PwC have been called in to take over EVCL Chill Ltd, and related companies EVCL One Limited, EVCL Two Limited and EVCL Three Limited.

They said some 1,092 staff have been affected with 658 transferring to key customers. Talks with workers whose roles have not been moved over were due to begin yesterday.

As well as “acute” driver shortages, the loss of a number of key contracts has also been blamed.

The Unite union said: “It is expected that the remaining workers at the company will be made redundant.”

The union has criticised the companies’ venture capitalists Emergevest accusing it of failing to invest.

The administration does not affect the wider EV Cargo Group which continues to trade as before.

Headquartered in Alfreton, Derbyshire, EVCL Chill mainly operates in chilled food logistics and storage, delivering products for retail customers.

It has warehouses and depots in locations including Bristol, Daventry, Alfreton, Rochdale, Crick and Penrith.

The administrators said the business has 374 trucks and 432 trailers alongside more than 20,000 pallets of warehousing capacity.

They said: “In the period to December, 2020, turnover at the business exceeded £167 million and was cash generative.

“However, EVCL Chill has struggled with a loss of a number of key customers and acute driver shortages during 2021 which, given its fixed cost base, created significant liquidity challenges.

“A number of sale options were explored but generated limited interest and management took the difficult decision to enter administration. Regretfully there are a number of roles that have not been transferred.”

They said the 658 roles that have been transferred, along with a number of services, had moved to key customers.