Logistics firm calls in administrators

REDUNDANCIES have been made at a Nottinghamshire logistics and warehousing firm after it went into administration.

Carlton Forest, based in Worksop, called in administrators on March 28 due to issues with rising costs, excess warehouse capacity and decreasing storage rates.

The Post understands nine of the firm’s 90 employees have been made redundant as of Thursday, with more likely to follow.

Carlton Forest operates more than 1.2m square feet of warehouse space across four sites in Worksop and Tuxford in Nottinghamshire and Bawtry and Hellaby in South Yorkshire.

Administrators said the company had been “battling industry and wider economic headwinds”, which included a “race to the bottom” on pricing and the loss of a key customer.

James Lumb, managing director at Interpath Advisory and joint administrator, said: “Carlton Forest, like many of its peers in the market, had grown to meet demand and this has had the effect of increasing its overheads.

“Unfortunately, however, the race to the bottom on pricing and loss of a key customer ultimately contributed to Carlton Forest’s inability to keep trading.

“Our immediate priority has been to work with employees, suppliers and customers to repatriate stock as quickly as possible, minimising disruption to customers as best we can.”

Administrators were appointed to three companies in the Carlton Forest Group - Carlton Forest 3PL, Green Forest Solutions LLP and Carlton Forest Group Holdings Limited.

Carlton Forest Group recently sold a 220,000 sq ft distribution site in Blyth Road, Worksop for £7 million.

The sale to LM1 Agency was made before administrators were appointed to other parts of the group.