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Anger over failed Whitburn
Page 12
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The closure of Whitburn Car Transport has led to allegations of asset stripping from a former manager. Guy Sheppard reports.
SCOTTISH-BASED Whitburn Car Transport has folded amid accusations of asset stripping less than five months after being bought by a group of investors.
The investors were advised by Grafton Aoociates, the company that helped set up Autocare from the failed Richard Lawson Auto Logistics business in January.
Autocare went into administration four weeks ago after being hit by the collapse of MG Rover (CM 15 September).
Bruce Hill, formerly general manager of Wh it bu rn. says that when it was bought in May, the new owners sold its 17 car transporters for around £800,000 and began leasing them instead.
He adds: "Whitburn was also contracted to give Autocare five of the vehicles with drivers on permanent hire.The debt for that was £170.000 and they did not pay it.
Hill is"absolutely gutted" that the business, which he ran successfully for a private owner for 15 years, has folded so soon after the sale.
He and Whitburn's 25 drivers were made redundant last week (28 September) after going with out pay for nearly a month.
David Hole. administrator of Whitburn, says it appears to have suffered a domino effect from Autocare's collapse but adds that the car distribution sector is going through a difficult period.
Although PricewaterhouseCoopers (PWC), administrators of Autocare, sold Autocare's predelivery inspection arm two weeks ago, hundreds of otherjobs in the car delivery division have been lost.
The T&G union is seeking a meeting with the administrators to clarify the situation. PWC says Grafton's chairman David Horton is also a director and sole shareholder of Ultra Holdings. the named owner of Autocare.
Grafton denies this, saying his role is to introduce investors and negotiate on their behalf. It says Grafton and Horton have never been the purchasers or beneficial owners of Whitburn and Autocare, adding that Whitburn's administration arose purely because of non-payments by Autocare.
Companies House lists Horton as a director of both Ultra Holdings and Autocare Distribution.