Our client, a vehicle recovery and repair business based near Exeter, employed 25 staff and had contracts with most of the major recovery companies including AA, Green Flag, and Europe Assist as well as a large police contract for recovery and storage facilities.
Despite these large contracts, however, the recovery part of the business was losing more and more money and putting the profitable vehicle repair side at risk.
After obtaining advice from our experienced team of insolvency practitioners the 2 sides of the business were split and dealt with separately in order to preserve the part of the business that had a viable long term future. The assets and goodwill of the vehicle repair business were valued independently and then purchased by the former director preserving 6 jobs. The remaining recovery business was not viable going forward and an orderly wind up of the business is currently underway.
The viable element of any business can be separated from the non performing areas and sold in this manner as long as the purchaser (whether connected or otherwise) pays the best price possible for the business and the transaction is undertaken at arms length.
Feedback from a Creditor during the process:
“I would just like to convey my thanks at the very professional way in which myself and my wife have been dealt with by your company, regarding the liquidation of this company.
As you know we were the landlords of the property that the company leased from us, not only that but we were also employees.
I would like to make it known that your company has kept us informed of any developments, as they happened, even with the constraints of the system.
Thank you once more and I look forward to hearing from you in the very near future.”
For professional and confidential advice about the options available to your business, contact Byrne Associates on 01275 464 038.
