Blackburn-based Kenyon’s Haulage Ltd, which has been in business since 1935, has entered administration, with Krolls assuming the lead in the company’s insolvency
An administrator’s spokeswoman revealed that 90 of the 97 road haulage personnel and 18 of the 22 warehouse staff have been laid off.
Approximately 70 drivers and warehouse staff were called into a meeting on Monday where they were informed of the bad news, according to an employee of the former family-owned company.
Graham Darnell, who also owns and runs Truswell and Sons and did run Adam Jones and Sons until that company went insolvent in May last year, took over the business in 2016.
Blackburn’s Kenyon’s Haulage has requested the administrators’ help
Michael Lennon and Steven Muncaster of Kroll were appointed as administrators of Kenyon Road Haulage Limited and Kenyon Warehousing Limited yesterday, according to a Kroll’s representative (March 20 2023).
“With the appointment of administrators due to the financial situation of the entities, both enterprises ceased to operate, with 90 of the 97 road haulage personnel and 18 of the 22 warehouse employees losing their jobs.
The administrators have retained the remaining workers to help them with their responsibilities and close down the haulage operations.
We were called in as employees to a meeting on Monday, according to the employee who declined to provide her name but has worked for the haulage company in Thornley Avenue for about four years.
“We were aware that the business was having financial difficulties because they were unable to pay the drivers and suppliers for the fuel and other daily necessities.
“So we were summoned on Monday at 11 a.m. There were around 70 of us present in total, along with the administrators and insolvency team.
“We were informed that we would no longer be employed after that.
Everyone in Blackburn is familiar with Kenyon’s, which has been established since 1935. However, after the family sold the business to Graham Darnell in 2016, things have changed significantly.
The worker alleges that in addition to having to pay for their own fuel, drivers were not compensated for the previous week’s work and were not provided any additional holiday pay or time off in lieu of holiday.”
Some of us knew this was coming,” the employee continued, “since the company has been having difficulties paying some of the drivers. The majority of us do not have jobs to go to, but some of us, including myself, who were aware of a problem, were able to find alternative employment. We feel wronged because some of the drivers have worked there for 16 years.
When a company goes into administration, it can have significant consequences for the staff who work there, their employment contracts may be terminated or transferred to a new company.
In either case, their job security is likely to be uncertain. Additionally, their wages and other entitlements may be affected, such as holiday pay and pension contributions.
In order to receive any owed pay, staff may need to complete an RP1 form which will allow them to make a claim to the National Insurance Fund.
It is important for staff to liaise with the administrators appointed to oversee the administration process in order to understand their rights and to ensure that they receive any owed payments as quickly as possible.
However, it is important to note that in some cases, staff may not receive all of the money owed to them, particularly if the company is insolvent.
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With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.