Shift, the company that acquired Tuffnells after its administration last year, has itself been sold in a pre-pack deal due to financial troubles, securing 55 jobs in the process.
A report to creditors from Opus Restructuring outlines the financial struggles that led to Shift’s downfall under the leadership of 30-year-old entrepreneur Jacob Corlett. One of the contributing factors was the liquidation of a related company, which had a significant impact on Shift’s operations.
The report revealed that Shift’s finances were adversely affected by several issues, including the collapse of SG Platform, a company owing Shift £784,000, of which Corlett is also a director.
In April, Shift rebranded as JLF Moving Solutions, focusing on urgent removal and storage services.
However, the business faced challenges, including an unprofitable project and a dilapidations claim from its landlord.
These setbacks, along with trade creditors and outstanding tax liabilities, left the company unable to meet its financial obligations. The impending liquidation of SG Platform, one of its major debtors, further worsened the situation, leading the board to recognize the company’s insolvency.
Shift entered administration in August, but a pre-packaged sale to Bespoke Moving Solutions (BMS) was finalized on the same day, safeguarding all 55 jobs.
Corlett, along with Shift’s directors Mark Pearson and Tamara Gregory, also serve as directors of BMS.
The total value of the pre-pack sale was £336,000, with £100,000 paid upfront and the remainder to be paid in seven monthly instalments of £39,333.
In August, Shift had announced a strategic shift, moving away from direct consumer services to focus on providing logistics carriers with access to a vast network of drivers. The company stated this would enhance driver earnings and significantly reduce costs for enterprise businesses handling final-leg deliveries.