Haulage firm bust despite Dragon's Den investment

JPM Eco Logistics directors with one of the haulage firm's eco lorries.

A Rochdale-based haulage firm has gone out of business just over a year after striking a deal with the 'Dragons Den' entrepreneurs.

Paul Merker and Jerry Mantalvanos accepted an offer of £100,000 from Dragons Theo Paphitis and Deborah Meaden for 40% of their company, JPM Eco Logistics, on the television programme in December 2007.

The company grew rapidly thanks to the investment and were featured on a catch-up programme as one of the show's successes just before Christmas, but, just a few weeks later, they have been forced into administration.

They used the money they got from the show to expand their fleet and move their business from Sparthbottoms to a larger premises in Oldham.

Things appeared to be going from strength to strength for the hauliers, whose vehicles were run entirely on bio-diesel, but they ran into financial difficulties as the credit crunch began to bite and the administrators were called in last week.

Tenon Recovery has been appointed administrator and they are hoping to sell the company and say they are in talks with a number of interested parties.