Fone Logistics has been purchased by a newly formed entity as part of a business restructure to secure its long-term future.
The sale of the Northumberland based distributor, which comes three years after a partial sale, was announced today by founder Ian Gillespie who said the decision was made to secure the long term future of the company, as well as its 75 staff, and provide a platform to push the business forward.
Fone Logistics dealers were sent an email last week confirming details of the sale, which took affect October 31, and played down suggestions the distributor had in fact gone out of business.
The acquiring company will retain the orginal Fone Logistics brand, but will have a new company registration and VAT number. All contractual agreements for dealers as well as commission terms will remain unaffected for the time being although a review is expected.
A statement sent to dealers last week read: “The Directors of the Fone Logistics group have undertaken a corporate restructure to put in place a financial structure that more accurately reflects the activities of the business as is today.
“Protecting our workforce is of absolute importance to us and, as such, all of the staff terms and conditions, tenure of employment and conditions of work will transfer unaltered.
“The trading activities have simply been acquired by and transferred to a new company. The trading activities will continue as normal.
“The existing terms and conditions of trade will novate across to the new entity and will remain as a legally binding agreement.”
Dealers were also told the sale was not related to recent issues regarding clawbacks with 3 and the decision had been made “long before” the clawback issues came to light in the press.
Fone Logistics managing director Ian Gillespie said: “It is not a secret that for some years the corporate structure of Fone Logistics has been out of kilter with where the business is at in its performance, and with our future aspirations for it.
“The structure that has been in place has held us back to some degree but this transaction resolves this and will allow us to kick on and do the things we want to do.
“The plan three years ago was for me to take more of a back seat in the day-to-day running of the business but since then, with my reacquisition of the share capital and the economic climate the way it is, things have changed. So, for the future well-being of the company and its employees we have performed this transaction to improve our position and create greater stability.
“Our network partners, suppliers, customers and employees have been extremely supportive over the restructure and I would like thank them for all their help.”