Founded in 1998, the Verve Group has gone into administration after having financial problems with falling sales and an unsuccessful attempt to sell a van centre in Glasgow. There were three dealerships, one body shop and a van centre across central Scotland, based in North and South Lanarkshire, East Ayrshire, West Lothian and Glasgow. It is reported that 115 jobs will be lost with the remaining 10 staff helping administrators to wind down the business.
The business stopped trading before KPMG were appointed administrator, with reports revealing that vehicles have been repossessed by funders as well as franchise contracts ceased.
Blair Nimmo, one of three appointed administrators from KPMG, said, ‘the company had an excellent reputation but has been experiencing serious operating challenges for some time and unfortunately could no longer continue as a viable business.’
Scotland has had a lower insolvency rate than the rest of the UK for a while now, with Begbies Traynor reporting a 13% fall in insolvencies. Interestingly, however, there has been a 23% rise in critically distressed businesses in Scotland. Read more about it here.
We are not involved in the administration and questions should be directed to KPMG who are handling the administration.
If you are an employee of the business, and you're worried about what might happen in the future, then please listen to the video below as it will tell you your rights as an employee of a insolvent business. There is a link at the end of the video to the Government website which expands further on what you need to know.