F&I Management & Training

Dermot Power, Graham Newton and Matthew Dunham, Business Restructuring partners at BDO Stoy Hayward were last week (Thursday 25 September 2008) appointed as joint Administrators of Motor World Ltd. Motor World Ltd is one of the UK's largest independent automotive car care retailers, trading from a chain of 237 retail units across the country. The Company also specialises in additional products including cycles and other leisure accessories. As a result of a significant downturn in retail sales on the high street, 95 of the 237 retail units have been closed immediately with the loss of 300 jobs. The Administrators have however been successful in selling the remaining 142 units of the business to Pacific Retail Limited; a Company funded by the existing investors Bailey Capital Limited. This has resulted in saving approximately 500 jobs. The business trades from a head office in Huddersfield. Motor World Ltd. had suffered from a significant downturn in retail sales on the high street which had led to a considerable number of its retail units trading at a direct loss. Dermot Power, Business Restructuring partner at BDO Stoy Hayward says: "Despite a strong trading name and presence on the high street, Motor World Ltd has been a direct casualty of the current retail difficulties and the continuing squeeze on available credit." Martin Waite of Bailey Capital says: "We remain acutely aware that difficult trading conditions will undoubtedly continue; but remain hopeful that we can move the business forward following the restructuring that has taken place, and the consequent strengthening of the management.

DATED: 30.09.08

FEED: AW