Over 1,200 jobs are to be axed as one of the UK’s largest car part suppliers has gone into administration.
Based across the UK, Unipart Automotive provides car parts to large specialists, like the AA and Kwik Fit. In the last few weeks, the company has been suffering from severe cashflow problems and has been attempting to secure emergency funding but without success.
Fortunately, 33 out of 180 sites across the UK are expected to be sold to rival firm, Andrew Page, and The Parts Alliance, saving at least 361 jobs. Andrew Page is owned by Endless, a firm that buys companies in financial distress.
Unipart has had a turbulent few years, despite receiving finance from shareholders. After a fall in prices, several significant losses and stricter regulations from suppliers, the company filed a notice with the intention to appoint administrators earlier this month.
Joint administrators, Mark Orton, Will Wright and Jonny Marston of KPMG were appointed this morning. Mark Orton commented on the situation, "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."
The CEO of the Unipart Group also made a comment this morning: “We are saddened by the Unipart Automotive situation but we know Andrew Page well and respect their near 100 year history in the automotive aftermarket. They have a strong reputation for selling high-quality products and brands and we’re pleased to have been able to support Jim Sumner’s [Executive Chairman of Andrew Page] plans to secure a future for the number of branches and former Unipart Automotive people. We look forward to working with Andrew Page to ensure the continued supply of high-quality Unipart branded products to Britain’s car owners and Unipart Car Care Centres."
We are not involved in the administration and questions should be directed to KPMG who is handling the administration.
If you are an employee of the business, please listen to the video below as it will tell you your rights as an employee of an 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.