Nationwide Accident Repair Services has gone into administration as car accidents have been less common during lockdown. The company and its subsidiaries operate 110 sites around the country employing 2,900 people, repairing cars for insurance companies.
The administrators have closed 30 sites with the loss of 540 jobs. After PwC was appointed as administrators, the majority of Nationwide Accident Repair's business and assets were sold to RunMyCar Ltd, a subsidiary of Redde Northgate.
Joint administrator Rachael Wilkinson at PwC said: "Companies across the automotive sector are still recovering from an extended period where activity ground to a halt, significantly depleting cash reserves.''
"Some are only reaching a fraction of pre COVID-19 volumes despite reopening outlets. Consequently, the sector is set for a make or break re-balancing period over the next few months.''
"Refreshed lending agreements, cash conservation and supply chain management will be key."
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Category: What is administration