UK’s KNP Logistics blames a ransomware attack for insolvency

One of the UK’s most prominent privately owned logistics groups, KNP Logistics, has declared insolvency after citing a ransomware attack in June, resulting in its downfall.

The company’s admin confirmed the announcement earlier this week, and their move will result in the redundancy of about 730 employees. Fortunately, the logistics company sold one of its vital entities, which would spare about 170 jobs.

This incident is a reminder of ransomware’s threat to businesses since it could impact the company’s internal data and people’s lives through jobs. However, the joint administrator overseeing the insolvency process on behalf of FRP Advisory explained that the company was in difficulties even before the ransomware attack.

The admin explained that it would eventually die out if the company struggled against challenging market conditions without landing urgent investment due to the attack. They assured everyone that they would support all affected staff through this incident.

 

A massive ransomware attack has affected the KNP Logistics systems.

 

According to one of KNP Logistics admins, a significant ransomware attack impacted their critical systems, processes, and financial information. This incident affected the financial position of the Group and its ability to secure additional investment and funding.

The Akira ransomware group in June listed the KNP Logistics Group on their list of victims. Fortunately, a cybersecurity firm released a decryptor for the Akira ransomware the following month and offered it to the victims. The decryptor circulated among incident responders.

However, the primary concern today is whether the targeted company could have potentially salvaged its data and operations using the decryptor if the company accessed it in time. It is still a mystery since researchers have not identified whether the company attempted such an action. The firm has not yet responded to inquiries about its interaction with law enforcement following the ransomware attack.

The collapse of KNP Logistics shows how much a ransomware attack could impact an entity. Companies should bolster their cybersecurity measures and response strategies to avoid a similar case that happened to KNP Logistics.