160-Year-Old Haulage Firm Falls After Cyber-Attack: Director Issues Urgent Warning

The 160-year-old haulage giant Knights of Old, once a stalwart of the UK’s logistics sector, was forced into administration in 2023 following a devastating cyber-attack that crippled its financial systems.

Paul Abbott, a board director at the Kettering-based firm, has issued a stark warning to businesses of all sizes: no organization is immune to cyber threats, and overconfidence in existing security measures could prove catastrophic.

The collapse of Knights of Old-a company founded in 1865 that employed 730 people-highlights the escalating risks posed by sophisticated cybercriminals, a threat recently underscored by high-profile attacks on retailers Marks & Spencer (M&S) and the Co-op.

- Advertisement -

Knights of Old’s demise began when hackers infiltrated its IT infrastructure, embedding a ransom note deep within its systems.

The attack corrupted critical financial data, rendering the company unable to meet reporting deadlines mandated by its lenders.

Despite attempts to continue operations manually, the damage proved irreversible. “We felt we were in a very good place in terms of security protocols,” said Abbott, reflecting on the breach. “But the attack bypassed everything we’d built.”

The firm’s collapse underscores the vulnerability of even well-established businesses to cyber threats.

Knights of Old had survived two world wars and multiple economic crises, yet a single cyber-incident erased its 158-year legacy.

Administrators confirmed that the breach left the company with no viable path to financial recovery, as lenders withdrew support amid the uncertainty.

Abbott emphasized the compounding impact of reputational damage: “Once trust is lost, it’s nearly impossible to rebuild.”

Small Businesses at Existential Risk

Cybersecurity expert Tash Buckley of Cranfield University warned that small and mid-sized enterprises (SMEs) face disproportionate risks from such attacks.

“For larger companies like M&S, disruptions are manageable because they have resources to deploy experts immediately,” she explained. “But for SMEs, a cyber-attack is often existential.”

Buckley highlighted the evolving tactics of ransomware groups, particularly the rise of “ransomware as a service” (RaaS), a model where hackers sell malicious software to third parties.

These attacks now frequently combine data theft with system encryption, doubling the pressure on victims to pay ransoms.

Recent incidents, including the M&S attack that forced store closures and the Co-op’s payment system failures, illustrate the broadening scope of targets.

“Cybercriminals no longer discriminate by industry or size,” Buckley added.

The human cost of these attacks is equally severe. Knights of Old’s 730 employees lost their jobs, while smaller businesses risk total shutdowns.

“Many lack even basic incident response plans,” Buckley noted, urging SMEs to prioritize cybersecurity training and infrastructure.

Urgent Calls for Proactive Defense Strategies

Abbott and Buckley agree that complacency is the greatest enemy. “Hundreds of businesses are compromised daily,” Abbott said. “Whatever safeguards you think you have-get them professionally verified.”

He advised companies to treat cybersecurity as a continuous process rather than a one-time investment, advocating for regular audits and real-time threat monitoring.

The National Cyber Security Centre (NCSC) has reiterated its warnings, acknowledging a surge in reported incidents.

An NCSC spokesperson stated, “We engage daily with organizations to bolster resilience, but the first line of defense is proactive preparation.

” Recommendations include encrypting sensitive data, segmenting networks to limit breach impacts, and maintaining offline backups.

For SMEs, Buckley stressed collaboration: “Pool resources through industry groups to share threat intelligence. Cybercriminals exploit isolation-collective defense is key.”

She also called for government incentives to offset the costs of cybersecurity upgrades for smaller firms.

A Wake-Up Call for All Sectors

The collapse of Knights of Old serves as a grim reminder of cyber threats’ destructive potential.

As ransomware tactics grow more advanced, businesses must adopt a mindset of “when, not if” an attack will occur.

Abbott’s warning resonates beyond logistics: “No one believes it will happen to them-until it does.” With cybercrime costs projected to reach $10.5 trillion annually by 2025, the message is clear: invest in defense now, or pay the price later.

Setting Up SOC Team? – Download Free Ultimate SIEM Pricing Guide (PDF) For Your SOC Team -> Free Download