Amtrak enters administration

Source: Supply Chain Digital

Date :28/08/2008 09:17:09

The delivery company Amtrak has gone into administration for the second time in two years, placing 1,000 jobs in jeopardy.

Ernst & Young was appointed administrator by Netfold Ltd, owner of the West Midlands-based company, last Friday, August 22, less than 20 months after it was purchased.

When it was sold to Netfold in January 2007, Amtrak had a turnover of £80 million, but it has struggled in the face of rising fuel prices and falling consumer spending.

An Ernst & Young administrator said: "It's a business led by consumer demand, and as consumer spending power has weakened, Amtrak's business has suffered."

Amtrak employs 1,000 people nationwide, either in its 80 depots or driving its fleet of over 2,000 trucks and vans.

Ernst & Young said employees would be receiving their full salary for the month of August.