3:49 pm, November 20, 2024
A former Kia dealer – which offloaded its franchise to another group after fearing the costs involved in updating its brand identity – has collapsed into administration.
Marsh Holdings Limited became a used car specialist last year after selling its Kia franchise to Howards in the summer.
It also held franchises for motorcycle brands Harley Davidson in Plymouth and Southampton, Triumph in Plymouth and Yamaha in Exeter.
Westcotts Business Recovery in Exeter has been appointed administrators.
A notice on the company’s used car website said: ‘Sadly, we are devastated to announce that we have had to cease trading with immediate effect.
‘After a difficult period of uncertainty in the economy, continued poor weather, forced over supply and stocking from our manufacturer partners and finally the devastating impact to businesses of the recent budget announcements, have left us, like so many others, in an untenable position.
‘We want to assure you that every possible effort was made to try and avoid this decision, but making it now is the only way we can minimise the impact on all those affected.
‘We recognise there will be those of you that have concerns and matters outstanding and we want to assure you we are doing everything we possibly can to resolve these. We kindly ask that you are patient whilst we work to ensure these are dealt with quickly.’
The message thanked customers who it said had ‘become friends’ for supporting the business for the last 22 years.
Accounts for the group, filed at the end of September, show it made an operating loss of £852,399 last year.
After taking into account a £1.2m second payment for the sale of Kia Taunton it clocked up a profit of just £27,526 for the year.
In the annual accounts, directors wrote: ‘The group will have needed to invest heavily in its Taunton premises in the shorter term in order to meet [Kia’s] latest corporate identity requirements.
‘The directors reviewed the scope of works required and estimated that a sum in excess of £750,000 will have been required before considering the disruption to the normal running of the business during the three month period of works.
‘Taking into account the disruption and inconvenience to our customers, along with the sums involved, the close proximity of the 2030 target and the consumer trends over the last three years the directors decided that this was not in the best interests of the group and sought to dispose of the business.
‘An asset disposal was made to Howards Group on 4th August 2023 which also saw all of the staff transfer under TUPE to Howards. The transaction generated a significant amount of cash which was used to reduce debt.’
The directors also said it had experienced problems with its Harley Davidson businesses due to ‘price increases’. The group only opened its Exteer Yamaha store at the end of 2023.
Looking ahead at the time, the firm warned: ‘In the year ahead there will be a number of economic challenges to contend with. The continued media coverage of economic uncertainty, rising inflation and interest rates that remain high will most certainly affect consumer confidence and willingness to spend.
‘The directors remain cautiously optimistic of the future and will continue to be decisive, dynamic and act quickly and appropriately in these rapidly changing and unprecedented times.’
The administrators can be contacted on 01392 288555.
