The High Court has appointed provisional liquidators to a freight logistics company that employs more than 30 people. The court heard Cube Logistics 3PL Limited has had cash flow problems after losing several customers and experienced difficulties after expanding the business.
The company, which operated from units in Swords, Santry and the Nangor Road in Dublin, was established in 2020. It provided services to several blue-chip clients in Ireland, the US, China and the Middle East.
At the High Court on Wednesday Mr Justice Rory Mulcahy appointed Tom Murray and Eoin Massey, of Friel Stafford, as joint provisional liquidators. He was satisfied the company was unable to pay its debts as they fall due and was insolvent.
The company’s directors are Paul Browne, from Bettystown, Co Meath, and Carmel Wintzer, from Rush, Co Dublin.
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Seeking the appointments, barrister Ross Gorman, for the company, said Cube Logistics made profits in 2021 and 2022 before experiencing a very difficult year of trading in 2023. It entered into agreements to expand its business by leasing two new warehouses. Anticipated new customers did not use these warehouses.
During that period the company also lost key customers, including Hilti Ireland. In addition, the UK-based parent of another key customer, Lloyd Fraser Holdings, went into administration, while another customer, PRL Ireland, terminated its contract with the company 12 months before anticipated.
Despite increasing its turnover to more than €5.38 million, the company made a substantial loss of €610,000 in 2023.
The court heard it owes Revenue €655,000 for VAT and PAYE/PRSI. It had an arrangement in place with Revenue to pay the money on a phased basis but is unable to comply. The company had attempted to restructure itself through the Small Companies Administrative Rescue Process (Scarp), but this was unsuccessful. It is currently in dispute with the landlord of its warehouse in Swords over rent arrears, and this has led to separate legal proceedings, the court heard.
The company considered entering the examinership process, but this was not seen as a viable option. Provisional liquidators would be able to provide for a more orderly winding down of the company, counsel said. In particular, the liquidators can deal with an estimated €5 million customer stock in the company’s warehouse.
The judge adjourned the case to a date later this month.
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