Freight firm goes bust

Monday 06 April 2020

12 people are out of work in Guernsey after a freight company collapsed amid the financial pressures caused by the corona virus pandemic.

All Channel Island Lines group companies are affected, with a total of 80 people losing their jobs across the Channel Islands and in the UK.

In a statement released last night, the firm's Chief Executive said the decision to close was down to the "very difficult trading conditions"

Andy Jehan said it was "as a direct result" of covid-19 and its wider impact on the economy.

"Due to very difficult trading conditions, as a direct result of the impacts of covid-19 on current and forecast volumes and cash flow the Boards of Directors of all Channel Island Lines group companies including Paul Davis Freight Services Limited (PDFS), have concluded that they have no alternative but to cease operations with immediate effect," said Mr Jehan.

"Customers with goods at depots in Jersey, Guernsey, Bristol and Southampton are being contacted to give them access to collect their goods."

Pictured: Andy Jehan. 

The four companies owned by the Channel Islands Lines group are: Rockayne (Jersey) Limited t/a Channel Islands Lines, Paul Davis Freight Services Limited, Channel Island Lines (UK) Limited and Channel Islands (Guernsey ) Limited.

12 staff are employed in Guernsey, 30 in Jersey and 38 in the UK. They are all being offered help to claim their "statutory entitlements" Mr Jehan said. 

Grant Thornton has been appointed to deal with winding up the Group’s affairs and will be helping the employees too.

Pictured: Condor Ferries has switched to freight only services during the pandemic lockdown.

Paul Davis Freight was launched in the 1970s and has offered freight services between the Channel Islands and the UK, and other offshore markets.

Its collapse comes as many Bailiwick businesses are forced to close and seek financial support through a hardship fund the States has set up in response to the pandemic.

Condor Ferries has stopped all passenger sailings to the island, and is concentrating on freight only, to ensure supply lines remain open.

CEO Paul Luxon said at the time: "These are unprecedented times for our industry, so we are taking prudent measures to ensure lifeline freight services to the Islands are maintained.

“It is crucial that all the right steps are taken and we are in direct and detailed dialogue with both the States of Guernsey and States of Jersey on this.”