A BURY haulage company could come to the end of the road because of a massive £130,000 unpaid bill.

The future of 110-year-old Smith's of Bury is in jeopardy after administrators were called in to a major customer, Bolton paper machine makers Beloit Walmsley.

Beloit, which had previously traded in Bury for around 90 years, has already shed 54 jobs from its 460-strong workforce.

Smith's of Bury carry out haulage work for Beloit and the contract accounts for 30 per cent of the firm's annual turnover.

Senior partner, Mr John Smith, said: "The £130,000 we are owed is for work carried out for Beloit since September.

"We had no idea they were in difficulties. What has happened has come out of the blue."

Smith's, based at Roach Bank Road in Pilsworth, carries does work for Beloit Walmsley all over the UK.

"About a fortnight ago, Beloit sent us a £10,000 cheque which bounced. It was after that when everything broke loose about the company being in trouble," disclosed Mr Smith.

"I realise they are in a precarious position. We've been trading with Beloit for around 70 years."

He went on: "We've been in touch with the administrators and they are guaranteeing us payment. "But at the end of the day, it could mean us only getting back 10p in the pound. And it might take years for us to be paid.

"We might get nothing; I just don't know. I'm not very optimistic."

Despite the debt, Smith's are still continuing to work for Beloit.

"We are carrying on because obviously a lot of our work involves Beloit," Mr Smith continued.

He admits the future of Smith's hangs in the balance because of the debt.

"But hopefully, we can carry on. It's just a matter of trying to find other work in what is a depressed area.

"However, I don't really see us getting more work in the area to compensate for the 30 per cent which Beloit means to us."

Smith's currently employs a 22 people, 18 of whom are drivers.

The family firm operates an 18-vehicle fleet from its Pilsworth headquarters which it has occupied for three years.

The company was previously based in Croft Street, Bury.

Mr Bill Dawson, of administrators Deloitte and Touche, said: "This situation is the same for all creditors."

He said attempts were being made to sell the company and to "maximise realisations" for creditors from the assets.

"Our role then is to agree creditors' claims and to pay out a dividend to them. But the dividend amount depends ultimately on our success in selling the business."

The guarantee of payment to Smith's applies only to work undertaken since the administrators took over.

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