Insolvency practitioners tighten security
A New Year upsurge in receiverships anticipated among West Midlands car component suppliers has spurred security guard companies for insolvency practitioners into a nationwide 'heavy recruitment drive'.
In the West Midlands, security specialist GMS has launched a pre-Christmas campaign to swell its 150-strong force which has been stretched to patrol a threefold increase in insolvent businesses on its books over the last few months.
The move came as GM made its shock announcement that it was axing Vauxhall car production at its historic Luton plant.
GMS director John Goldsmith said: ‘There are clear signs in some industry sectors, principally motor and leisure, of financial problems and the major players are preparing for an upturn in insolvencies within the coming months.’
Further uncertainty over MG Rover’s future at its Longbridge plant in Birmingham, which BMW ditched in the spring, has raised fears that banks are to cut overdrafts to suppliers unless they diversify into other sectors.
Rapid response teams typically swoop on Friday afternoons to board up, change locks and guard premises as receivers get to work.
‘The timing makes it easier for the receiver to deal with disgruntled staff’ said Goldsmith. ‘They can get them off the premises with the weekend coming up.’
Advantage West Midlands, a regional development agency, is concerned any reduction in 200,000 production target at Longbridge could starve dependent suppliers of business.
Last week, automotive suppliers Excel appointed PricewaterhouseCoopers partners Robert Hunt and Richard Rees as administrators.
Ernst & Young in October was appointed as receiver for car components company Finelist, which went bust with debts in the region of #114m.
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