Fri, 25 Jul 2014 | ADMINISTRATION
Unipart Automotive has entered administration having failed to find a buyer for the business.
It was reported earlier this month that administrators had been put on standby as the firm teetered on the brink of financial collapse; the news has now come that the company has indeed entered administration. More than 1,400 employees will lose their job at Britain’s largest independent car parts supplier as a result.
A deal was made with Andrew Page and The Parts Alliance, which will see 33 of Unipart’s 180 UK branches remain open. The rest will be closed immediately as the administrators – KPMG – will look to find further buyers for the rest of the business and its assets.
Joint administrator Mark Orton, of KPMG, said: "Despite intensive efforts over recent weeks, a sale of the whole Unipart Automotive business could not be reached, and a buyer could only be found for 33 of the sites on a going concern basis.
"Unfortunately, the business had been experiencing financial stress for a number of years, so the level of cash and further operational restructuring required to rescue a more substantial part of the business posed too much risk for most interested parties."
The failure of the business comes despite the reportedly strong performance of the UK’s automotive sector. It is thought that the number of new cars on the road, facilitated by cheap finance deals, does not reflect the competitiveness of the spare parts market, with UK firms competing against overseas firms.
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Related information:
Unipart Automotive looks for buyer with administrators on standby
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