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Jobs lost as Verve Group car dealership collapses | Jobs lost as Verve Group car dealership collapses |
(2 days later) | |
More than 100 people have been made redundant after the Verve car dealership group went into administration. | More than 100 people have been made redundant after the Verve car dealership group went into administration. |
The Glasgow-based company operated three dealerships across central Scotland, as well as a body shop and a van centre. | The Glasgow-based company operated three dealerships across central Scotland, as well as a body shop and a van centre. |
It had struggled in recent years, with dwindling sales of new and used cars. | It had struggled in recent years, with dwindling sales of new and used cars. |
There had also been an unsuccessful attempt to sell the van centre in Baillieston. | There had also been an unsuccessful attempt to sell the van centre in Baillieston. |
Formed in Glasgow in 1998, the Verve Group had dealerships in Coatbridge, Crookedholm, near Kilmarnock, and Bathgate. Its body shop was in Law, near Carluke. | |
Blair Nimmo, Tony Friar, and David Standish, of KPMG Restructuring, have been appointed joint administrators. | Blair Nimmo, Tony Friar, and David Standish, of KPMG Restructuring, have been appointed joint administrators. |
They said the Verve's inability to meet debts owed to car stock funders led to funders repossessing their vehicles and, separately, franchise agreements had also been terminated. | They said the Verve's inability to meet debts owed to car stock funders led to funders repossessing their vehicles and, separately, franchise agreements had also been terminated. |
As a result, the business had already ceased trading before the appointment of the administrators, but had retained its full workforce of 125 staff. | As a result, the business had already ceased trading before the appointment of the administrators, but had retained its full workforce of 125 staff. |
However, 115 have now been made redundant with immediate effect. The remaining employees will be assisting administrators in winding down the business. | However, 115 have now been made redundant with immediate effect. The remaining employees will be assisting administrators in winding down the business. |
Mr Nimmo said: "The Verve Group was a well-established business with a committed workforce, and it is the staff which will now be our immediate priority. | Mr Nimmo said: "The Verve Group was a well-established business with a committed workforce, and it is the staff which will now be our immediate priority. |
"The company had an excellent reputation but has been experiencing serious operating challenges for some time and unfortunately could no longer continue as a viable business." | "The company had an excellent reputation but has been experiencing serious operating challenges for some time and unfortunately could no longer continue as a viable business." |
He added: "We will be working with government agencies to ensure all employee issues are dealt with as quickly as possible. We would like to thank the remaining staff for their continued co-operation during this difficult time." | He added: "We will be working with government agencies to ensure all employee issues are dealt with as quickly as possible. We would like to thank the remaining staff for their continued co-operation during this difficult time." |
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