1:26 pm, July 24, 2014
CAR parts giant Unipart Automotive has gone into administration making more than 1,200 people redundant.
The Solihull-based company, which operated from 80 locations, has been sold in part to Andrew Page and The Parts Alliance saving just over 360 staff and 33 sites.
However, administrators KPMG said the rest of Unipart Automotive has not been saved – making 1,244 staff redundant.
Mark Orton, partner at KPMG and joint administrator, said: ‘Unfortunately, the business had been experiencing financial stress for a number of years, so the level of cash and further operational restructuring required to rescue a more substantial part of the business posed too much risk for most interested parties.
‘Our team of employment specialists will be supporting all staff on completing redundancy forms and putting them in touch with job seeker services. We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.’
Unipart Group, which is owned by its employees, has an equity stake in Unipart Automotive but sold its control in 2011.
John Neill, chairman and chief executive of The Unipart Group, said: ‘We are saddened by the Unipart Automotive situation but we know Andrew Page well and respect their near 100 year history in the automotive aftermarket.
‘They have a strong reputation for selling high-quality products and brands and we’re pleased to have been able to support Jim Sumner’s [executive chairman of Andrew Page] plans to secure a future for the number of branches and former Unipart Automotive people.
‘We look forward to working with Andrew Page to ensure the continued supply of high-quality Unipart branded products to Britain’s car owners and Unipart Car Care Centres.’
Unipart Automotive also supports more than 700 independent, owner-operated garages through its Unipart Car Care Centre programme, in addition to having 19 franchisees. However, these companies are not included in the administration and will continue to operate as normal.
