Assets of one of East London’s largest motor dealers are being successfully realised by administrators Smith & Williamson

The accountancy and business advisory group has secured buyers for substantial parts of the assets of Vauxhall  franchise Crown Motors, which ran two major sites in Romford and Dagenham, Essex, and employed 70 people, who were laid off following the appointment of administrators.

Tony LeVoi, a neighbouring dealer based at Lakeside Retail Park, West Thurrock, Grays, has acquired vehicles, wholesale parts stock  and certain equipment while Bristol Street, a Vauxhall and Chevrolet franchisee based at Ilford, has also acquired vehicles.

It is understood that as many as 35 people formerly employed at the Dagenham and Romford sites, which ceased trading on August 26, have been offered new jobs at adjacent dealers, in a programme co-ordinated by Smith & Williamson.

The site at Romford has been vacated by the administrators following closure of the business and has been occupied by Tony LeVoi, which is establishing a new Romford-based operation to complement its existing sites at Thurrock.

Tony LeVoi is one of London and Essex’s largest motor retailers, covering Lakeside and the A13 corridor area.

Bruce Vickers, Managing Director, Tony LeVoi, said: “We are pleased to have the opportunity to increase our market area responsibility adjacent to our current territory and to be able to employ as many Crown people as possible within our business structure.”

Meanwhile negotiations continue to find a buyer for the remaining business assets on site at Rainham Road South, Dagenham.

Greg Palfrey and David Blenkarn of Smith & Williamson were appointed joint administrators of Crown Motors on August 26 following a difficult trading period in the vehicle sales industry.

Mr Palfrey, who operates from the south coast practice in Southampton, said: “Our team worked flat out to complete deals with buyers within five working days in order to get the best recovery result for creditors and to facilitate as many of the redundant staff as possible being offered new jobs.

“Tony LeVoi has a strong brand presence and we wish them every success going forward.

“As regards Dagenham, negotiations continue but it is too early to say what the outcome will be. Our thoughts are very much with the staff who worked there; we are doing all we can.”

Mr Palfrey added: “The directors of Crown Motors had done their best in a difficult trading environment but ultimately the commercial pressures were too great and they requested the appointment of administrators to protect the creditors’ interests.

“Whilst official figures show that the car scrappage scheme has had a positive impact on the motor trade nationally, some car dealerships have been struggling in the financial crisis due to the lack of consumer confidence and the reluctance of banks to offer credit to potential buyers.”

Last month Crown Motors sold its Ilford dealership, which specialised in Vauxhall and Chevrolet cars.

Parties interested in Crown Motors’s former operations at Dagenham should contact Mr Palfrey or Mr Blenkarn at Smith & Williamson on 023 8082 7600.

Disclaimer

By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.

Note to editor

Smith & Williamson is an independent professional and financial services group employing over 1,500 people. The group is a leading provider of investment management, financial advisory and accountancy services to private clients, professional practices and mid-to-large corporates. It operates from offices in London, Belfast, Birmingham, Bristol, Dublin, Glasgow, Guildford, Maidstone, Salisbury, Southampton and Worcester. Nexia Smith & Williamson is the audit practice of Smith & Williamson and is an independent company.

Smith & Williamson Limited

Regulated by the Institute of Chartered Accountants in England and Wales for a range of investment business activities. A member of Nexia International.

Nexia Smith & Williamson Audit Limited

Registered to carry on audit work and regulated by the Institute of Chartered Accountants in England and Wales for a range of Investment business activities. A member of Nexia International.