Tuesday, October 07, 2008
LSUK in administration as 600 jobs go
LSUK, the car parts firm, has gone into administration and 600 people have been made redundant.
The announcement comes just five days after it was acquired by rival aftermarket firm Euro Car Parts.
ECP said the initial acquisition was made quickly to protect the 600 staff employed by LSUK, with it paying the due salaries and rent with immediate effect.
The company, however, was in a worse predicament than ECP had known.
ECP purchased LSUK for an undisclosed sum that a spokesman said would probably not be recovered.
"I don't think it was purchased for a huge amount because LSUK was obviously in trouble, but I think it's safe to say that Euro Car Parts has lost a lot of money in the past few days," the spokesman said.
"The problem was that LSUK was more poorly than they thought it was - they didn't want it to affect the Euro Car Parts business, which is doing very well."
ECP said the administrators, Tenon Recovery, was already in contact with several interested parties.
The acquisition included all 53 LSUK branches, including MT Diesel Products, Protech Automotive and Yeovil Rewind.
DATED: 07.10.08
FEED: MT
The announcement comes just five days after it was acquired by rival aftermarket firm Euro Car Parts.
ECP said the initial acquisition was made quickly to protect the 600 staff employed by LSUK, with it paying the due salaries and rent with immediate effect.
The company, however, was in a worse predicament than ECP had known.
ECP purchased LSUK for an undisclosed sum that a spokesman said would probably not be recovered.
"I don't think it was purchased for a huge amount because LSUK was obviously in trouble, but I think it's safe to say that Euro Car Parts has lost a lot of money in the past few days," the spokesman said.
"The problem was that LSUK was more poorly than they thought it was - they didn't want it to affect the Euro Car Parts business, which is doing very well."
ECP said the administrators, Tenon Recovery, was already in contact with several interested parties.
The acquisition included all 53 LSUK branches, including MT Diesel Products, Protech Automotive and Yeovil Rewind.
DATED: 07.10.08
FEED: MT
