Administration brings job losses at Nottingham AutoPark
MORE than 20 jobs have gone at Nottingham AutoPark, part of the Drive Assist group, after it called in administrators.
A spokesman for the administrators, Zolfo Cooper, said the Nottingham operation closed with the loss of 21 jobs.
Five members of staff have stayed on temporarily to help wind the company down.
More than 250 jobs at Drive Assist, a car-leasing firm, have also been lost.
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The 259 employees at Drive Assist, based in Tamworth, Staffordshire, were made redundant with immediate effect, said Zolfo Cooper.
The firm, which in total employs 640 people at 14 offices, deals with the short-term leasing of replacement vehicles on a credit hire basis to individuals following road traffic accidents, when they have not been at fault.
The company's other business activities include the retail sale of its ex-fleet vehicles at Nottingham AutoPark, which is based in Mapperley, part of the Millennium Motor Group division.
According to Zolfo Cooper, the administrators were appointed as a result of the companies experiencing "considerable working capital management issues" and subsequent cash flow problems.
Alastair Beveridge, partner at Zolfo Cooper and joint administrator said: "Unfortunately, in recent months the companies have experienced the loss of a major customer which has resulted in increasing cash flow pressures and administration was the only option available.
"Regrettably, 259 employees have been made redundant with immediate effect.
"We will be working alongside all stakeholders to determine the most appropriate next steps for the benefit of all creditors."
Employees were advised to contact 0161 838 4579, or email driveassistemployees@zolfocooper.eu, while individuals with cars on hire should contact 0161 838 4585 or driveassistcustomers@zolfocooper.eu.
Comments
by 2020truth
Thursday, December 13 2012, 6:57PM
“The sad fact is that DA were really only working for so many motor insurers and much of the misunderstandings about their charges failed to appreciate the charges were for one insurer to hit another with - like all vicious circles- they are ever decreasing until you disappear.
With around 28 pages upon moneysupermarket of complaints purely about DA it is a real reflection of the dysfunctional UK motor insurance market and hence the Competition Commission is now investigating the terrible ways we have all lost out in service, compliance to laws and the money making scams of the UK motor and wider insurance market.”
by copperjohn3
Wednesday, December 12 2012, 8:48AM
“Maybe the poor conduct of Drive Assist and mistreatment of clients has contributed to their financial difficulties, not to mention the extortionate vehicle hire rates which they pass on to insurance companies. Their poor performance and abject failure to deliver good service and value for money is well documented.
My only sympathy is for the front line workers who will no doubt have been subjected to enormous pressure to secure a short term profit with no effort to provide a quality service and secure future for the organisation. No doubt the rule making ' masters ' will have feathered their personal nests sufficiently that this news will have very little consequence for them.”