Bullet Freight Systems Ltd which began operations in 1997 in Otahuhu, Auckland, has gone into receivership.
As many as 200 Bullet Freight Systems workers have lost their jobs, after receivers failed to find a quick buyer for the company. The nationwide logistics firm was placed into receivership last Friday by director Paul Elliott.
Receivers PPB Advisory tried to arrange a quick sale over the weekend, but no willing buyer could be found for the whole group which has depots in Auckland, Hamilton, Wellington, Nelson, Blenheim, Christchurch and Dunedin.
New Zealand managing partner David Webb says that PPB had been forced to notify ‘the majority of employees’ that their jobs were gone.
“It’s not a decision that’s been taken lightly, and all employment wages… were paid up until 5pm Tuesday afternoon,” he said.
First Union, which represents 34 workers at the company’s East Tamaki site, estimatesup to 200 jobs have been lost across the company’s depots.
First Union organiser Rudd Hughes says: “First Union is very concerned at the situation, especially since these were not high-paying jobs and most of these workers are living payday to payday.”
The union understood most individual agreements had no redundancy-pay provision, while no collective agreement had been negotiated, as union members had only recently joined.
Hughes says the union is hopeful most of the drivers will find other work, as there is a shortage of drivers in the Auckland area.
Bullet Freight Systems’ main shareholder is Time Capital NZ Nominees. A smaller block of shares is held by Owen and Janette Ferguson.
Related companies Strait Freight and Strait Linehaul, part of the same logistics group, which merged in March 2013 – click HERE for link – have also been placed into receivership.
The receiver’s first report is due in September.
