It has been reported in Car Magazine that Waters Auto Planet, one of the largest car dealerships in the South of England, is facing financial problems. Calls to any of their dealerships are being routed to a call handling service where they say that the dealerships are closed due to a financial dispute. This could mean anything of course. The lady I spoke to said that she expects them to reopen this afternoon. Could it be that some sort of pre pack administration is being negotiated? Of course a prepack is designed to allow continuation of trade and shutting down all the dealerships even if for a few hours is not a good start.
On looking at the company's accounts it appears that it has suffered falling sales since the credit crunch but its last accounts showed a healthy balance sheet and a profit of £8m on sales of £43m. Mind you those accounts only went up to December 2009 and so the company does not have a current credit rating.