BusinessCorporate FinanceRover collapse causes dealership breakdown

Rover collapse causes dealership breakdown

Collapse of Midlands car maker causes dealership operator to go into administration.

The collapse of MG Rover has led to further misery in the rest of the UK, with the announcement by administrators PricewaterhouseCoopers that car dealership operator Phoenix Venture Motors is in administration.

Link: 5,000 workers go as Rover is written off

PVM operates MG Rover dealerships offering new and used car sales, as well as servicing and spares.

Rob Hunt, joint administrator and partner at PwC, said that it was owed a ‘substantial sum’ of money by Rover, and that as the chances of securing a sale of MG Rover Group as a going concern looked ‘less likely’, the directors of PVM were left with ‘little option but to seek an administration order’.

PVM operates from 11 sites in the Midlands, northwest and south of England, and has 472 employees. In the year ended 31 December 2003 it had turnover of about £80m and reported a loss of £2.5m.

Tony Lomas, Steven Pearson and Rob Hunt, all partners at PwC were appointed joint administrators of PVM.

‘We will be working with management to quickly establish which of the sites can remain open and continue to trade, so as to preserve parts of the distribution channel for MG Rover cars’, Hunt added.

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