A long-standing log transport business at the top of the South Island has gone into voluntary adminstration because of tough trading conditions and cash flow problems.
PwC partners John Fisk and Richard Longman have been appointed the administrators of Waimea Contract Carriers Limited, a large log transport business operating in Nelson, Marlborough and the West Coast.
The business was expected to trade as usual during the voluntary administration, which would effectively freeze the company's financial position, while the options available to rehabilitate it were assessed.
Mr Fisk said the company's directors made the difficult decision to put the company into voluntary administration because poor trading conditions had resulted in cash flow pressures.
He said increased health and safety costs and "competitive pressure" were also among the "combination of factors" that were causing financial difficulties.
He said the Waimea Contract Carries employed about 120 people and owned about 80 trucks.
The standard voluntary adminstration term was 25 days, but this could be extended if required, Mr Fisk said.
"We'll investigate the company and come up with a plan, then put that to creditors...if a plan can't be worked out it will go into liquidation," he said.
Waimea Contract Carrier's website describes the business as the largest privately-owned local transport operator that carts logs for the major forest owner in the Nelson, Marlborough and West Coast regions.
The Companies Office lists members of the McIntyre family are listed as the owners and directors and the business has been around since 1981.