Family-led Northamptonshire warehousing and logistics business Linkline Transport is on the brink of collapse. Linkline has posted a notice of intention to appoint administrators via law firm Shoosmiths, protecting the Wellingborough firm against creditor action for about 10 days as it seeks a solution.

While the NOI is in effect, the company typically continues to operate, but under the shadow of impending administration. Decisions will be made with the potential administration in mind.

Founded in 1993, Linkline serves major clients like Primark and GXO, providing logistics, haulage, warehousing, and pallet network services across the UK. Last May, the company secured a £12.5 million funding line from Shawbrook Bank. This included a £5 million Confidential Invoicing Finance loan for working capital and a structured cash flow facility intended for expansion into additional sites.

However, Linkline’s accounts, due by the end of March, remain overdue according to Companies House. In recent developments, the company has dismissed most of its employees without prior warning or consultation. They have also cited a redundancy. Employment law specialist Nuala Toner from Nualaw stated that these actions might have breached employment rights, as there should have been a consultation period of at least 30 days. Affected employees are advised to seek legal advice and may be eligible for compensation.

The situation at Linkline highlights the growing number of insolvencies in the UK, reflecting the challenging economic landscape. Rising costs, economic uncertainty, and the aftermath of the COVID-19 pandemic have placed significant pressure on businesses. Linkline’s difficulties, despite securing substantial funding, underscore the harsh realities many firms face in navigating the current economic climate. 

If the company proceeds to administration, appointed administrators will take control with a goal to rescue the company, sell its assets to repay creditors, or achieve the best possible outcome for creditors.There has been no official comment from the business yet.