Big delays as Amtrak calls in administrators

Published: 29 August, 2008

Hundreds of wine distributors and merchants suffered a blow as Amtrak courier firm fell into administration this week causing delays to deliveries across the UK, writes Shirley Webb.

Hundreds of wine distributors and merchants suffered a blow as Amtrak courier firm fell into administration this week causing delays to deliveries across the UK, writes Shirley Webb.

Ernst and Young administrators have been appointed. Up to 900 jobs are at risk following the West Midland firm's demise. Amtrak specialises in national and international parcel freight, with a dedicated WineTrak arm to handle fragile packages.

"Amtrak has found trading in the current economic climate challenging. It is a business led by consumer demand and as consumer spending power has weakened, Amtrak's business has suffered," Ernst and Young said in a statement. "We're currently assessing the financial situation of the business and as a result the collection of the delivery of goods may be disrupted."

However, companies such as Les Caves de Pyrene, Arthur Rackham, Imbibros, Taurus Wines and Heritage Wines and UK vineyards have been left without a suitable firm to deliver their wines. Parcels sent out on Friday had not arrived at their destinations by the time Harpers went to press, despite Amtrak's website directing firms to use Business Post Ltd.

"It is a blow because Amtrak had a dedicated wine arm. There is nobody who we can use at such a good price," said Rupert Pritchett, owner of Taurus Wines. "With so many using Amtrak's WineTrak, there will be a few mail order merchants who will be in for a delivery headache."

Heritage Wines director Craig Adams added: "Both Heritage Wine & Old Cider Mill Bond (our bonded warehouse) have used Amtrak as our preferred third party small consignment courier for four years.

"It was one of the few couriers of its type, that actually offered a dedicated service to the handling and carriage of glass, while also offering insurance against subsequent loss or damage; two factors that made them stand out from the crowd."

Virginie Champalou, shop manager at Caves de Pyrene told Harpers: "The service had only just improved since they were taken over by Netfold at Christmas.

"The first I heard there was a problem was when Business Post turned up to collect our parcels."

The Amtrak parcel business suffered a loss of £29 million loss in the first half, with delivery volumes down 9% in June compared to the same month last year. It had a regional hub in Warrington and an administration office in Bristol.

This article has been taken from this week's issue of Harpers magazine, which is available by subscription only. To subsribe to Harpers, please click here.