Tuesday, October 07, 2008
Euro Car Parts does U Turn on LSUK
Independent motor parts supplier Euro Car Parts (ECP) has closed down rival LSUK less than a week after acquiring it.
The move is completely unexpected after ECP chairman Sukhpal Singh told AM just last week that he expected to restore the LSUK business to profit within months.
However, LSUK staff that turned up for work this morning found themselves locked out with a notice on the door telling them the company had ceased trading.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
In a statement ECP said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Administrators Tenon Recovery is now looking for another buyer and already has “several interested parties”.
DATED: 07.10.08
FEED: AM
The move is completely unexpected after ECP chairman Sukhpal Singh told AM just last week that he expected to restore the LSUK business to profit within months.
However, LSUK staff that turned up for work this morning found themselves locked out with a notice on the door telling them the company had ceased trading.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
In a statement ECP said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Administrators Tenon Recovery is now looking for another buyer and already has “several interested parties”.
DATED: 07.10.08
FEED: AM
