A Derbyshire-based logistics business, EVCL Chill, that delivered chilled food to supermarkets, such as Asda and Sainsbury’s, has entered administration in part because of the shortage of lorry drivers.

The insolvent company had a turnover of £167 million and has pursued a number of sale options, but the loss of key customers and driver shortages meant it became loss-making and there were“significant liquidity challenges”.

The business is headquartered in Alfreton and until recently, employed 1,092 staff in a number of locations, including Daventry, Rochdale, Crick, Bristol, and Penrith. It operated 374 trucks and 432 trailers in addition to having 20,000 pallets of warehousing capacity.


EVCL Goes into Administration

EVCL Chill was previously called NFT Distribution and it specialises in ambient and chilled foods. NFT Distribution was placed into administration early last year prior to being bought out of insolvency by EV Cargo, its existing owner.

To date at EVCL Chill, some 658 jobs and a number of services have been transferred to two key customers, Asda and Sainsbury’s. Despite this, there is uncertainty about the futures of the other 434 workers who have not been transferred.

It was reported in a trade publication, The Grocer, that the failure of EVCL could also be costly for retailers, since contracts with drivers and warehouse staff may need to be renegotiated, with higher rates demanded.

The administration does not affect the parent company, EV Cargo Group, which is owned by private equity investor Emergevest, and it continues to trade as before.