A DEALERSHIP group in Scotland has gone into administration, leaving nearly 140 staff with a question mark over their future.
Leven Car Company, which has four showrooms in Selkirk and Edinburgh, is a franchisee for Kia, Mitsubishi, Suzuki, Aston Martin, Lotus, Rolls-Royce and Caterham.
The dealership group, which was established in 2014, was referring queries to its PR firm, which issued a statement saying Leonard Curtis Business Rescue & Recovery was appointed the administrator of Leven Cars Group Limited yesterday.
It acquired the Kia, Mitsubishi, Suzuki and Lotus franchises from the Belmont Group in March 2018, and The Scotsman reported that staff today turned up at its Selkirk showroom, only to be turned away.
The statement from Leonard Curtis Business Rescue & Recovery said: ‘After reviewing the company’s options, following a difficult couple of years for the motor trade, the directors have taken the difficult decision to appoint administrators.
‘The company, which employs 139 staff across its four dealerships, has ceased trading. At this stage, none of the company’s employees have been made redundant whilst the administrators assess the company’s financial position and explore the possibility of finding a buyer for all or parts of the business.
‘The company will continue to maintain a presence at the company’s dealerships for a short period of time to ensure that any customer queries can be addressed.’
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.’
Meanwhile, a spokesman for Kia said: ‘Kia Motors (UK) Limited is saddened to hear that Leven Car Company have called in administrators and we are particularly sorry for any of their customers who have been affected by this.
‘The Leven Car Company is an independent business and a franchise holder and is not directly controlled by Kia Motors (UK) Limited and consequently we must await the decisions and any announcement of the administrators.’
Leven Cars Group had its accounting period to December 31, 2018 extended to June 30, 2019. Meanwhile, a confirmation statement required by Companies House by December 19, 2019 is overdue. Its statement of accounts for the year to December 31, 2017 show it made a pre-tax loss of £323,541 on a turnover of £46.7m.
Pictured via Google Street View is the Selkirk dealership when it was owned by Belmont