KNP Logistics, described as one of the United Kingdom’s largest privately owned logistics groups, has declared insolvency, citing a ransomware attack in June as the primary reason for its financial downfall.

Approximately 730 employees will face redundancy due to the administration process, although a glimmer of hope emerges as one of the group’s vital entities has been successfully sold, preserving around 170 jobs.

It’s worth noting that KNP Logistics Group was already grappling with financial challenges before the ransomware incident, as highlighted by Raj Mittal, the joint administrator overseeing the insolvency proceedings on behalf of the business advisory firm FRP Advisory.

Mittal commented, “Against a backdrop of challenging market conditions and the inability to secure urgent investment due to the attack, the business could not continue. We will provide support to all affected staff during this challenging period.”

Administrators further revealed that the “major ransomware attack impacted key systems, processes, and financial information, ultimately affecting the financial stability of the Group and its ability to secure additional investment and funding.”

Back in June, KNP Logistics Group, operating under various names, including Knights of Old, was on the list of victims targeted by the Akira ransomware gang.

In July, cybersecurity firm Avast publicly released a decryptor for the Akira ransomware, offering hope to the numerous victims who had fallen prey to the gang since its emergence in the spring. However, whether KLP Logistics had access to or utilized the decryptor remains unclear.

A spokesperson for the company’s administrators did not respond to inquiries regarding their interactions with law enforcement or external incident response entities following the ransomware attack.