EVCL Chill enters administration after driver shortage challenges

The Alfreton, Derbyshire business was reported to be cash generative in December 2020, with a turnover of more than £167m. However, EVCL Chill struggled with a loss of a number of key customers and acute driver shortages during 2021, which created significant liquidity challenges.

Sale options were explored, but generated limited interest, leading management to make the decision to enter administration.

About 658 roles and a number of services have been transferred to key customers under their contractual arrangements in an effort to provide continuity for parts of the business. Employees will be notified this week on the roles that will not be transferred.

Helen Wheeler-Jones, Eddie Williams and Matthew Hammond of PwC (PricewaterhouseCoopers) have been appointed as joint administrators. The administration does not affect the wider EV Cargo Group, which continues to trade as before.

‘Difficult situation’

Commenting on EVCL, Williams said: “This has been a very difficult situation and involved intense discussions with key stakeholders on an accelerated basis to get to this position.

“As businesses move from survival mode to recovery, the financial climate is still very volatile. We will continue to fully support all affected staff members during this difficult time.”

Workers union Unite said the collapse of EVCL demonstrated a flawed logistics and haulage model, a direct result of its parent company seeking to maximise short term returns at the expense of the investment needed to secure its long-term future.

Source: foodmanufacture.co.uk