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Red Driving School gets new owner Red Driving School gets new owner
(10 minutes later)
LVG, the parent company of driving instructor business Red Driving School, has been bought just days after going into administration.LVG, the parent company of driving instructor business Red Driving School, has been bought just days after going into administration.
Private Equity firm Kelso Place has acquired the business as a going concern and will continue to trade under the Red brand as normal. Private equity firm Kelso Place has acquired the business as a going concern and will continue to trade under the Red brand as normal.
Kelso said Red was a profitable business turning over £40m a year, that had suffered from cash flow problems. The firm told the BBC it had full confidence in LVG's management and had no plans for any redundancies.
Red, established in 1992, is the UK's third largest driving school. It said Red was profitable and had just suffered from cash-flow problems.
"Red is a very strong , stable and profitable business, which experienced a short-term funding difficulty when its financing facilities were changed recently," said Philip Weston, a partner at Kelso. Red, established in 1992, is the UK's third-largest driving school.
Franchise business
"Red is a very strong, stable and profitable business, which experienced a short-term funding difficulty when its financing facilities were changed recently," said Philip Weston, a partner at Kelso.
"We have made a significant cash investment in Red in order to solve its funding problem and to ensure that it is able to continue operating successfully in the long term.""We have made a significant cash investment in Red in order to solve its funding problem and to ensure that it is able to continue operating successfully in the long term."
LVG employs 400 people in total across three offices, but all the Red Driving School instructors are franchisees.LVG employs 400 people in total across three offices, but all the Red Driving School instructors are franchisees.
It also owns two other businesses under the Red brand - Red Instructor Training and Red Fleet Training, which have been taken over by Kelso.It also owns two other businesses under the Red brand - Red Instructor Training and Red Fleet Training, which have been taken over by Kelso.
Red Instructor Training trains would-be driving instructors, and Red Fleet Training is employed by companies to test and improve the driving skills of their employees. Red Instructor Training trains would-be driving instructors, while Red Fleet Training is employed by companies to test and improve the driving skills of their employees.
LVG went into administration last Thursday.LVG went into administration last Thursday.