UK railway company plunges into liquidation after struggling with debt

The UK railway company becomes the latest in a string of travel businesses to plunge into liquidation as energy costs in particular are proving difficult for firms to navigate

A railway company has plunged into liquidation after being in business for eight years.

Frost Rail Services Ltd is a company that works on construction of railways and underground railways.

It was incorporated on June 26, 2017 and had a small workforce with less than 10 employees.

The business operates primarily under the trading name Frost Solutions, providing specialised maintenance, branding, and safety services for the UK transport and rail sectors.

On May 20, the Lancashire-based company collapsed into liquidation with a reported high debt ratio, according to company filings.

Based on the company’s latest balance sheet, it appears to have £13,623 in liabilities, owing more than it owns.

Christopher Lawton and Paul George both of Business Helpline Group Limited were appointed liquidators of the company.

The winding up of the business comes as several other transport companies have also folded recently.

The mounting costs of running a business are still a serious concern, with energy bills being a particularly difficult thing for companies to navigate.

UK-based airline, Zenith Aviation fell into administration, with all flights grounded and 41 jobs lost.

The charter airline, headquartered at London Biggin Hill, has suspended all flights and laid off its workforce after turning to administrators for help.

The company entered liquidation on May 15 and is in an insolvent position due to cashflow issues, debtors not paying, and historic ownership and management issues.