STL Linehaul 2023 Ltd, a long-standing trucking firm based in Christchurch, has gone into liquidation, leaving creditors owed over $1.7 million.

The decision to place the company into liquidation was made on May 1, following a resolution by its shareholders. The task of overseeing the liquidation process has been entrusted to the licensed insolvency practitioners Brenton Hunt of Insolvency Matters, along with Steven Khov and Kieran Jones of Khov Jones, who have since been appointed as the company's liquidators. 

With a history spanning over 65 years, STL Linehaul had built a reputable name in the industry. The company's website boasted a fleet of over 60 trucks, 100 trailer units, and a network of eight depots across New Zealand. It also employed around 75 staff members.

The first report released by the liquidators on May 7 provided a comprehensive list of creditors, which notably included several firms within the transport industry.

The roots of STL Linehaul trace back to its establishment in 1956 by Snow Pearson, originally known as Stock Transporters Ltd. Initially focused on rural operations, the company gradually expanded to include general and specialist freight work under the leadership of brothers Shane and Robert Pearson. However, a recent change in ownership occurred last year when Christchurch-based David Grater took over as the director of the now-defunct business, as indicated by Companies Office records.

According to the liquidators' report, the company faced difficulties due to unexpectedly low freight volumes, particularly over the past four months. Despite attempts by directors to raise additional capital, they were ultimately unsuccessful. As a result, several trade creditors placed STL Linehaul on stop credit. In light of these challenges, the directors sought professional advice and made the difficult decision to place the company into voluntary liquidation.

The liquidators' report estimates that staff wages and holiday pay amount to approximately $600,000, while the company owed around $700,000 in IRD PAYE and GST. Additionally, the total owed to unsecured creditors is estimated at $1.25 million. At the time of liquidation, the company's bank account was in overdraft.

Furthermore, it has been revealed that the company had leased computer equipment and forklifts. The remaining plant and equipment will be collected and subsequently sold through an auction process.

The liquidation of STL Linehaul comes as a blow to the Christchurch transport industry, impacting not only the company's staff and directors but also its numerous creditors. The situation serves as a reminder of the challenging conditions faced by businesses operating in the current economic environment.