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Receivers go in at Malcolm Harrison

21st May 1992, Page 6
21st May 1992
Page 6
Page 6, 21st May 1992 — Receivers go in at Malcolm Harrison
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Which of the following most accurately describes the problem?

• One of the country's best known used truck dealers, Malcolm Harrison, has gone into receivership. The company owes £3.9m to Lloyds Bank and a smaller sum to other creditors.

The receiver, Andrew Peters of Touche Ross in Birmingham, blames the firm's high borrowing. Harrison, which also owns a truckstop at Crick, run by a franchisee, was struggling to meet its interest payments, says Peter. Its turnover was £14m.

Barlaston, Staffs-based Harrison was founded by Malcolm Harrison in the 1970s. The company employs 20 people and currently has 38 trucks in stock.

A farm owned by the firm is expected to be sold as a going concern; Peters will look at ways of selling the rest of the group in the next few days: "The Crick truckstop is on a prime site for redevelopment," he says. Fin ding a buyer for the used truck operation will be hard, says Peters, because of its associations with the founder: "On the whole the business is Malcolm Harrison," he says.

Malcolm Harrison blames the bank for tightening overdraft arrangements. "Malcolm Harrison will be back, " he vows.