Leven Car Company appoints Leonard Curtis administrator
Leven Car Company, a car dealership group in Scotland, has gone into administration, leaving nearly 140 staff facing possible redundancy. While no employees have been let go as of yet, administrators from Leonard Curtis Business Rescue & Recovery are currently weighing up the financial state of the company, and the possibility of finding a buyer to safeguard its future.
Political uncertainty and a lack of clarity over emissions regulations saw new car registrations in the UK sink to a six-year low in 2019. With consumers reluctant to commit to buying vehicles, as they brace themselves for the culmination of Brexit, sales fell 2.4% in the last 12 months in comparison to the previous year. With just 2.3m units being shifted, new automotive sales in the UK have declined for three consecutive years according to the Society of Motor Manufacturers and Traders.
Car dealerships have faced slim pickings in this challenging environment. The latest to succumb to these pressures is Leven Car Company, a dealership group based in Scotland. Founded in 2014, the company has four showrooms in Selkirk and Edinburgh, and is a franchisee for Rolls-Royce and Caterham, as well as acquiring the Kia, Mitsubishi, Suzuki and Lotus franchises from the Belmont Group in March 2018 – despite a growing list of financial woes at that point.
Leven’s statement of accounts for the year to December 31 2017 showed it made a pre-tax loss of £323,541 on a turnover of £46.7 million. The situation declined from there, and the firm had its accounting period to December 31 2018 extended to June 30 2019, while a confirmation statement required by Companies House by December 19 2019 is now overdue.
Since the turn of the year, Leven has been referring queries to its PR firm, and as reported by Car Dealer Magazine, it has since been confirmed that the company is in administration. The news places 139 jobs in jeopardy, with Leven ceasing trading as administrators from Leonard Curtis Business Rescue & Recovery assess its financial position and explore the possibility of finding a buyer for all the business’ assets. The Scotsman reported that staff first heard of the move having turned up to work at Leven’s Selkirk showroom, only to be turned away.
Joint administrator Stuart Robb commented, “We are currently assessing the company’s financial position with a view to seeking a buyer for all or parts of the business. This is a unique opportunity to acquire a business with a strong reputation, excellent customer base, and a highly knowledgeable and loyal workforce.”
