1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156 
City collapse inquiry
Page 7
If you've noticed an error in this article please click here to report it so we can fix it.
• Truck finance firm GE Capital has brought in a team of forensic accountants to try to find the 215m it lost when City Group collapsed in March. It is believed that the De Vere Group has beer instructed by GE's solicitors to find out what happened in the run up to City's surprise decision to call in administrators.
GE Capital financed much of the Milton Keynes-based haulage group's expansion during the nineties. Started in 1979 by David Gee, City expanded very quickly and enjoyed the distinction of being the only haulier to make the Sunday Times Profit Track 100 during the year 2000. At its height it ran over BOO trucks and listed Coca-Cola, Tesco and British Gypsum among its clients.
However, City Group's demise was equally swift. It ran a complicated debt factoring arrangement (through GE). Administrator Andersen was called in when GE noticed that there was large hole in the group's finances but it was unable to save the company, which was wound up a few months later.
Some pundits have questioned what an investigation ten months on will achieve. A former City insider believes the De Vere investigation is trying to track cashflow through the business. He adds that there is "no doubt many dealings were committed in the run up to the collapse", but says most people believe they were "being done to prop up an ailing company".