A HAULAGE firm collapsed owing more than £1.2million to creditors, it has been revealed.

Nelson-based Macgregor Europe fell into administration earlier this year shortly after its 35 staff were laid off.

Its boss blamed the collapse on the loss of a bumper contract and the impact of the recession on the haulage business.

Now administrators have revealed the firm’s debts, including a £145,000 unpaid tax bill and £450,000 owed to banks.

But they have also warned that the remains of the business has insufficient assets to be able to pay back most creditors.

A Companies House administrators’ report outlines the grim position Macgregor Europe, based on the Lomeshaye industrial estate, was in when it collapsed in April.

As recently as 2007, Macgregor, which was founded in 1998, boasted a £5million turnover.

But last year, the firm lost a huge contract with a US client, pushing it into the red on a £2.4million turnover.

Unaudited accounts show the company made operating losses of £294,000 in 2009 and £213,000 for the year ending March 31, 2010.

Accounts also show that Macgregor had assets worth more than liabilities, until last year, when liabilities totalled £59,000 more than assets.

Bury-based administrator Leonard Curtis said the company owed employees, classed as preferential creditors, £20,000 but held only £10,000 in physical assets.

As a result it said: “At present it is considered unlikely that there will be sufficient funds available to enable a distribution to unsecured creditors.”

According to the report, among those owed money by Macgregor are Pendle Council (£62,000), Staffordshire-based UK Pallets (£154,000) and HM Revenue and Customs (£145,000).

Backers Royal Bank of Scotland and Nat West, classed as secured creditors, are owed £361,000 and £89,375 respectively.

Last month, Macgregor Europe founder Peter Macgregor said the loss of a vital £100,000-a-month contract with a US firm had pushed the Pendle business over the edge.