Bad debts, disputed invoices and reluctance by the banks to provide further funding have led to the downfall of high-profile Hiab dealer Lorry Loaders, according to its liquidators. Creditors, including Hiab UK, Plant Equipment and Volvo Truck and Bus, are unlikely to receive any of the £560,000 they are owed now that the Wisbech, Cambs industrial equipment supplier is being wound up. Hiab UK and Hiab UK (Equipment) alone are owed more than £220,000.

According to insolvency practitioners the company had experienced problems in 2003 when a 10% increase in the cost of its purchases led to a £58,000 loss.

An accountant was employed to sift through its accounts and the insolvency report says: "A discrepancy was found within suppliers' accounts and after thorough investigation on both sides this was not resolved." Estimated losses for the year ending June 2006 were £55,000 cashflow problems due to slow payments compounded the company's problems. Director Peter Bavister put £32,000 of his own money into the business to pay salaries.

He also talked to five banks about funding but concerns over Lorry Loaders' £121,000 loan account prevented a deal being struck.

Further bad debts and a dispute with its factoring company over £31,000 led to it being placed into creditors' voluntary liquidation on 26 April. When CM rang Lorry Loaders we were told by Hiab East Anglia spokesman Nathan Cockman that this company would be trading from Lorry Loaders' old premises: "Obviously we are doing the same sort of work in the same area." Bavister could not be contacted not respond as CM went to press.


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