Unipart Automotive,
a UK-based supplier of car parts and garage equipment, has collapsed with the
loss of more than 1,400 jobs across the country after failing to find a buyer.
The
business, based in Solihull, operates 180 branches around the UK, trading under
three brand names – Unipart Automotive, Partco Autoparts and Express Factors.
Of the group's
1,813 staff, 1,244 were made redundant with immediate effect on
today,
while over 200 workers have been retained to assist administrators, KPMG. It is
expected those jobs will be lost also when administration is complete.
The remaining 361 staff will transfer to Andrew
Page and the Parts Alliance, which has bought 21 and 12 former Unipart branches
respectively.
Mark Orton, a partner at KPMG and joint
administrator, claimed: "Despite intensive efforts over recent weeks, a
sale of the whole Unipart Automotive business could not be reached, and a buyer
could only be found for 33 of the sites on a going-concern basis.
"Unfortunately, the business had been
experiencing financial stress for a number of years, so the level of cash and
further operational restructuring required to rescue a more substantial part of
the business posed too much risk for most interested parties."
Roger Maddison, national officer for the
automotive sector for the Unite union said, "We will be seeking an urgent
meeting with the administrator to ensure that the interests of the workforce
are top of their considerations."
While the UK had witnessed a sharp rise in
new car sales, the spare parts market remains hugely competitive, with UK firms
competing against overseas suppliers. Unipart Automotive found its margins
squeezed by heightened competition.
KPMG is reviewing its options for the
remaining assets of the business, including the potential sale of leasehold
interests. Unipart's stock has already been sold off, leaving many empty units.
The accountancy firm added that Unipart Automotive
also supported over 700 independent, owner-operated garages through its car
care centre programme, and 19 franchises.
"These companies fall outside of the administration
and will continue to operate as normal," according to KPMG.
Oxford based Unipart Group – which operates
across the automotive, manufacturing, mobile telecoms, rail, retail and
technology sectors – sold a 51 per cent stake in Unipart Automotive to H2
Equity Partners in 2011, retaining an equity stake but one condition of the
sale was that Unipart Group exercised no operational control over the business.
Also, Unipart Automotive was granted restricted access to use of the Unipart
brand on a limited range of wholesale outlets.
Unipart Group has written off its stake in
Unipart Automotive and is keen to stress that the two companies are quite
different to one another.
John Neill, chairman and chief executive of
the Unipart Group, said: "We are saddened by the Unipart Automotive
situation and even though we sold control of this business years ago, we are
concerned for the future of the employees.”
"The
group is financially strong and well placed to support its international growth
strategy,” he added.
Unipart Automotive was separate from Unipart
Group with the exception of some distribution services provided by Unipart
Group. The group said that less than one per cent of its 10,000 employees
provided services to Unipart Automotive, and that those people would be
deployed elsewhere in the business.
Unipart Group has three arms: Manufacturing,
logistics and consultancy which includes healthcare and supply chain
consultancy.
In 2013, Unipart Group’s turnover went up by
five per cent to £1,056.3 million from £1,010.8 million; it had an operating
profit £26.2 million in 2013 against £28.8 million in 2012 financial year. The company
declared in 2013 it had a strong cash flow position that yielded net cash on the
balance sheet of £25.2 million.
Unipart was formed in 1974 when British
Leyland put John Egan in charge of the company with a remit to make it an
independent business to market British Leyland service parts. Egan left the
company in 1976 to join Massey Ferguson. John Neill took over from Egan and has
remained at the helm ever since, having led a management buy-out in 1987.
Unipart Group is 70 per cent owned by employees and its pension fund and 30 per
cent by institutions.
No comments:
Post a Comment