Overfinch in administration

12 November 2010

Overfinch, the Range Rover tuner and body shop, has gone into administration. In an announcement the firm blamed "significant one off non-trading costs". The firm is being marketed for sale by the administrators and expressions of interest are said to have been put forward. Overfinch was beloved by celebrities, especially footballers, who perhaps thought an iconic luxury 4x4 needed a facelift....

It is noted that a winding up petition was served against the company on the 5th November. If the directors had acted earlier then a CVA may have been possible. If the firm had some large "one-off" costs, but it was a niche operator in a growing market then provided the one off costs didn't happen again then surely it had a viable future with the debt paid off over say a 5 year period. Even if a winding up petition is served it is possible to stop it being advertised or even the hearing adjourned to give the company time to prepare a CVA.

All busineses make mistakes and a CVA can help them continue to trade, by stopping creditors legal actions, and so avoid paying the ultimate price by closing down and assets being sold at knock down prices.