Kinaxia Logistics has acquired the trade and assets of Nelson Distribution. This will secure the jobs of all 170 staff employed in the business, and the service to Nelson’s customers will be uninterrupted.
This acquisition follows Nelson Distribution’s parent company KNP Logistics Group filing a notice to appoint an administrator on Friday, September 22 2023.
Nelson Distribution, which is based in Belper, Derbyshire, merged with Knights of Old in 2016 and generates annual turnover of £26m. KNP Logistics Group comprises Knights of Old, Nelson Distribution and Steve Porter Transport.
Kinaxia has stepped in to acquire Nelson Distribution’s 117-strong fleet, premises and customer base. All 170 Nelson Distribution staff are transferring to Kinaxia under TUPE arrangements.
Simon Hobbs, chief executive of Kinaxia, said Nelson Distribution would continue to serve its customer base as normal as part of the wider Kinaxia group.
“We are pleased to have reached agreement to acquire the trading and assets of Nelson Distribution.
“It’s a good business and an excellent fit for Kinaxia. We share the same values, and Nelson Distribution is based in a good strategic location for our group.
“We are pleased to welcome the entire Nelson workforce and customer base to the Kinaxia family of businesses, and look forward to working with them and continuing to provide their customers with the great service they have been used to.”
Kinaxia is a top 15 UK logistics group which has its headquarters in Macclesfield, Cheshire. It employs more than 1,600 staff nationwide with a fleet of over 850 vehicles transporting goods for the retail, leisure, food and drink and manufacturing sectors.
The group also has 2.7 million sq ft of warehouse facilities nationwide, offering contract packing, e-fulfilment, returns management, storage services and a complete distribution service.
FRP Advisory which has been appointed as administrators for KNP Logistics has said that a major ransomeware attack on the group was a key contributor to the group's troubles.
The cyber attack hit key systems, processes and financial information and "adversely impacted" on the group's financial position and its ability to secure additional investment and funding, FRP added.
As per above, Nelson Distribution has been bought by Kinaxia, but Knights of Old, KNP Logistics Group, Steve Porter Transport and Merlin Supply Chain Solutions are all currently in administration.
In a statement FRP Advisory said:
"With the exception of Nelson Distribution Limited, unfortunately the majority of the group’s employees have been made redundant, with a small group being temporarily retained to assist in the winding-down of operations. Regrettably, approximately 730 employees will be made redundant."
Raj Mittal of FRP Advisory and joint administrator, said:
“Despite being one of the UK’s largest privately owned logistics group, KNP fell victim of a ransomware attack earlier this year that caused significant disruption.
“Against a backdrop of challenging market conditions and without being able to secure urgent investment due to the attack, the business was unable to continue. We will support all affected staff through this difficult time."
In its latest annual results to 31 May 2022, KNP Logistics saw turnover rise to £94.5m (2021: £76.5m) whilst pre-tax profit fell slightly to £1m (2021: £1.1m).
FRP Advisory said the administrators will be contacting creditors in due course.
Separately, it has been reported that both Selazar and The Lloyd Fraser Group have appointed administrators