Removals firms suffer huge losses

Removals firms in the West Midlands are suffering crippling losses caused by the impact of the global credit crisis and slowdown in the housing market. Some are reporting a huge downturn in business.

One reported seven cancellations in one week.

Several firms have either closed or been taken over since Christmas, including family business Kertland & Son of Wolverhampton, Netherton-based E&P, Abbey Removals of Birmingham, CMM Commercial Move Management of Bridgnorth and Kingswinford-based Careful Removals.

Chris Burke, director of Wolverhampton-based Burke Brothers, said: "To say things are bad at the moment is an understatement. They are dire."

He said the firm's sales inquiries were 38 per cent down on this time last year, although across the UK the figure was 44 per cent.

Thomas Hombury, of Dudley Removals based in Newland Grove, Dudley, said: "We had seven cancellations last week. People are in so much debt with credit cards, and everything is getting more expensive like gas and electricity. People can't afford to move."

In January, Kertland & Son was saved from going to the wall by rival company Hingley Hastilow. Company director Richard Thomas, said: "Trade is down. It has been going on for 12 months." He said he was relying on overseas work.