Senedd Member calls for clarity over Gwynedd Shipping Company shut down

Questions about the North Wales-based logistics firm Gwynedd Shipping Limited were raised in the Senedd on Wednesday, after confirmation that the company had gone into administration.

North Wales MS Mark Isherwood raised questions to Economy Minister Vaughan Gething seeking clarity on the situation and the future of the company’s employees.

Mr Isherwood’s inquiries came following reports on Tuesday that the company, operating from Holyhead, Deeside, Birkenhead, Belfast, and Dublin, had suddenly ceased operations.

During a session in the Senedd, Mr Isherwood questioned the reasons behind the company filing for administration. This inquiry comes particularly after the company’s strategic review in February last year indicated a stable operational future.

Mr Isherwood also sought information on unconfirmed reports of parts of the company being taken over by another logistics firm and the possibility of alternative employment opportunities for the drivers.

Mr Isherwood said: “Gwynedd Shipping operates from two sites in North Wales, Holyhead and Deeside, as well as from Birkenhead, Belfast and Dublin. What is your understanding of why the Company filed for administration, when the Company’s strategic review of its latest annual results for the year to May 2022, posted last February, said, quote, its Directors had ‘a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future’, or will you be seeking and sharing this information? What is your understanding of unconfirmed reports that parts of the Company are being taken over by another logistics firm, and that other local and regional hauliers were already offering some of the drivers work, or will you be seeking and sharing that information? And finally, given your comments about the DWP, what specific engagement have you and your officials had, or will you be having, with Jobcentre Plus and the DWP regarding help for those who are looking for alternative work or for retraining opportunities?”

The Minister assured Mr Isherwood that “locally, every time there has been a significant unemployment event, we have worked very constructively—and my officials are doing that now—together with DWP and the local authority”. He added: “On the other points about unconfirmed reports, that’s the point – they’re unconfirmed reports – and you wouldn’t expect me to add to speculation here. What I will do is, as we get information that has not been made available to us thus far, I’ll share it with Members, and, crucially, to want to provide some confidence for people that are concerned about their own futures, and will be worried about their own employment futures, to make sure that the opportunities to look for alternative work are made as easily and readily available to them as possible, and to make sure that, whether they approach the local authority, or the Welsh Government or the DWP, that we are working together to make sure that there is a ‘no wrong door’ approach and we get them to the point where they need to be able to go, to make sure they have the right support for them.”

The Joint Administrators, Kroll, confirmed they are in talks with several parties interested in acquiring certain assets, contracts, and routes. There is hope that these negotiations will create opportunities for some former employees. Additionally, efforts are being made to support these employees in claiming their statutory entitlements.

A spokesman from Kroll said: “On 15 January 2024, James Saunders and Michael Lennon, both of Kroll, were appointed as Joint Administrators for Gwynedd Shipping Limited and Gwynedd Transport Limited, which together employed 142 people. The businesses, which originally began trading almost 40 years ago, have faced financial challenges common in the transport and distribution sector including certain loss-making contracts. Unfortunately, due to the extent of legacy liabilities, the businesses were unable to secure their future on a going concern basis and as such the majority of employees were made redundant with immediate effect as the businesses ceased to trade upon appointment. The Joint Administrators are in discussions with several parties interested in acquiring certain assets, contracts and routes and it is hoped that this will provide opportunities for a number of former employees. Support is also being provided to former employees to ensure that statutory entitlements can be claimed.”