The provisional liquidators have been appointed to Cube Logistics 3PL Limited, a freight logistics firm employing over 30 staff members, by the High Court. The business, headquartered in Dublin’s Swords, Santry, and Nangor Road, had been set up in 2020. It offered services to a variety of prominent clients in Ireland, the USA, China, and the Middle East.
Cube Logistics was hit by cash flow issues following the loss of multiple customers and faced challenges following business expansion. Tom Murray and Eoin Massey from Friel Stafford were assigned as join provisional liquidators by Mr Justice Rory Mulcahy in a High Court hearing on Wednesday, as he was persuaded that the company was insolvent and unable to meet its debt obligations.
Paul Browne of Bettystown, Co Meath, and Carmel Wintzer of Rush, Co Dublin are the directors of the company. According to barrister Ross Gorman, representing the company, Cube Logistics generated profits in 2021 and 2022, but 2023 was a challenging trading year. The company expanded its business by leasing two additional warehouses, which unfortunately, potential customers did not utilise.
During this period, the company lost significant clients like Hilti Ireland. Moreover, Lloyd Fraser Holdings, a major customer’s UK parent, went into administration and another customer, PRL Ireland, prematurely terminated its contract with Cube Logistics. Even though the company’s turnover rose to over €5.38 million, a substantial loss of €610,000 was recorded in 2023. The company owes Revenue €655,000 for VAT and PAYE/PRSI and is not in a position to respect its agreement with Revenue to make phased payments.
The company’s attempt to restructure through the Scarp process failed. There are ongoing legal disputes with its Swords warehouse landlord over rent arrears. The company considered entering examinership but deemed it unfeasible. It was argued that provisional liquidators could provide a more structured closure of the company and manage an estimated customer stock of €5 million in the warehouse.
The judge has decided to reconvene the case later this month.