Morning:
10°c
Administrator in at car dealer Camden
Lucy Tobin4 Feb 2009
One of Britain's biggest car businesses has become the latest victim of the credit crunch, putting 800 jobs at risk.
Camden Group operates eight dealerships selling Ford, Nissan, Renault and Vauxhall marques in locations including Milton Keynes and Aylesbury, Buckinghamshire.
It also supplies fleet vehicles to rental firms including Avis, Hertz and Europcar.
Camden, which had sales of £884 million and made pre-tax profits of £4.6 million in the year ending December 2007, called in administrators Zolfo Cooper.
The firm, based at Leighton Buzzard, Bedfordshire, carried out a £66 million management buyout in 2007 and is believed to have been unable to meet annual debt repayments.
Alastair Beveridge of Zolfo Cooper said: “Camden Group has not been able to escape the extremely tough trading conditions that the sector as a whole is battling through.
“We will continue to trade the business as a going concern as we assess the options for the business.”
Reader views (2)
Ford and Vauxhall now have fewer dealerships to sell their cars at the recently increased prices.
Great business decision. Doh!
- Dave Davies, Basingstoke, 04/02/2009 16:36
Report abuse
What they did their £66 million buyout actually pay for, how much of the £66 million was actually used to buy car stock, instead it probably went on "goodwill" and other intangable assets, none of which can be used to reduce borrowings, and how many of their premises are rented, the snag is that although they may have paid £66m, what they did not get is exclusivity, as there are thousands of dealerships in the UK selling the same cars perhaps with lower overheads, and as soon as the £66M was paid they were then unable to compete with the competition with lower operating costs. Also the Internet has made a big difference, very few people today buy a new car without looking to see how much an identical car is elsewhere, after all warrentys are nationwide. However who would of thought in 2007 that the motor trade would go "belly up". All those people queing up outside Northern Rock wernt drawing their money out to buy cars. This is probably the first of the big groups to go, however you wont notice a difference, there will be a "arranged insolvancy" and continue, the small creditors will not get paid, the staff will be the same, the car manufacturers will not lose out as the new cars having not been paid for will be invoiced to the "new company" new funding will be found, although for some strange reason it couldent be found last week, and life goes on (as we know it)
- Jim Alan, Lake District, 04/02/2009 14:34
Report abuse
