'Adverse impacts' of a major ransomware attack are being blamed for the collapse of the company behind the Isle of Wight's Steve Porter Transport Group, as businesses step in to take on work left by the firm.
Workers on the Island have been let go after Steve Porter Transport's parent company, KNP Logistics Group, entered administration.
FRP Advisory Trading Limited was appointed administrator of the haulage and distribution business on Monday, September 25.
FRP said some employees of Steve Porter, based in Cowes, had been temporarily retained 'to assist with the administration process' and customers were being contacted.
Now, joint administrator, Raj Mittal, has said KNP fell victim to a ransomware attack in June 2023, which 'caused significant disruption'.
He said: "Against a backdrop of challenging market conditions and without being able to secure urgent investment due to the attack, the business was unable to continue.
"We will support all affected staff through this difficult time.”
Around 730 KNP Group staff have been made redundant, FRP said.
When Steve Porter Transport Group merged with Knights of Old Group, now KNP Logistics, in September 2019, the company employed around 45 people.
Following the collapse, haulage firms have been picking up work left by the company.
Owner, Chris Peck, said: "We have been able to step in to help out some businesses who provide services to the Island.
"We have also employed one former Steve Porter worker and are hopeful of taking on another".
Another haulage firm, Ferryspeed, refused to comment when contacted.
Steve Porter Transport has been a major player in distribution and transport on the Isle of Wight since it was founded in 1981.
Administrators said they will be contacting creditors in due course.