Six jobs in York saved
10:54am 21st November 2011
Six jobs secured in York as Yorkshire vehicle parts firm sold out of administration.
Godfrey Automotive Parts Limited, a £6m turnover motor parts trade retailer based in Grimsby which also has an outlet in York, has been sold out of administration for an undisclosed sum by joint administrators Rob Sadler and Bob Maxwell of Begbies Traynor.
The sale to a new company owned by North West auto cleaning products business Tetrosyl Group Ltd completed just nine days after Begbies Traynor’s appointment as administrators. The deal will save all 77 jobs, including six jobs at the York outlet on Amy Johnson Way, Concorde Park.
Godfrey Automotive Parts Ltd was placed in administration on Wednesday 9 November owing creditors around £2.5m, including a £500,000 debt to the HMRC.
The company had traded from seven stores and distribution centres in Leeds, Wakefield, Sheffield, York, Hull, Scunthorpe and the head office and flagship showroom in Grimsby. The firm sold a comprehensive range of auto accessories, vehicle parts, tools and maintenance consumables from its retail and trade counters.
All of the company’s depots and stores remained open as usual, and the firm continued to trade as usual whilst a team of insolvency and restructuring specialists conducted a wide search for a potential buyer for the business that would recover funds for creditors and secure as many jobs as possible.
Administrators quickly identified Manchester-based auto product manufacturer Tetrosyl as a potential acquirer, and following an intense period of accelerated negotiations and due diligence, a sale of the business and its assets was completed on 18 November 2011.
A team of seven staff from Begbies Traynor’s Leeds, Hull, York, Halifax and Sheffield offices managed the company’s affairs from their retail outlets across the region.
Other advisers involved in the deal include Andrew Walker, partner in corporate recovery at Irwin Mitchell in Leeds.
Rob Sadler of Begbies Traynor said:
“Godfrey Autoparts is an established and reputable independent parts retailer, and the business had every chance of thriving with the right owner and with proper funding in place.
“Our corporate recovery teams from all over Yorkshire helped to get a grip on the individual depots, and we were able to undertake an accelerated M&A process and drove a deal that will recover 100 per cent return for secured creditors and saves the jobs of everyone at the firm,” Rob Sadler of Begbies Traynor.
The new company formed to acquire the business is called Godfrey Autoparts Ltd. It is entirely independent of previous shareholders and is owned 100 per cent by Maccess Group Limited which is a wholly owned subsidiary of Tetrosyl Group Limited. The directors of the previous company will be retained as employees to manage the business.
Andy Clay, director at Begbies Traynor in York, said:
“Tetrosyl manufactures leading car cleaning brands CarPlan, Wonder and Carlube, and already distributed its products through the firm and knew it had a strong reputation and a loyal customer base. The acquisition makes perfect strategic sense for both business and hopefully, now the business can start to rebuild without the millstone of debt that had built up over several very tough years of trading.”
Andrew Walker, a Leeds-based partner in Irwin Mitchell’s corporate recovery team, said:
“It is excellent that this deal has been turned around very quickly, helping to safeguard a number of jobs in what are difficult financial times.
“We hope that, following this sale, the company is able to thrive under its new leadership and grow despite the ongoing economic problems which continue to impact on so many firms.”
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