PwC fixes pre-pack for vehicle accident repair specialist
7 Sep 2020
PwC has arranged a pre-pack sale of Nationwide Accident Repair Services, saving over 2,000 roles at the garage specialist, but with 540 jobs lost following the company’s collapse into administration after Covid-19 hit trading
7 Sep 2020
Rachael Wilkinson, director, and Rob Lewis, partner, of PwC were appointed as joint administrators of Nationwide Accident Repair Services and a number of its subsidiaries.
The business, headquartered in Witney, Oxfordshire operates a nationwide network of garages, servicing the accident repair market for a number of large UK general insurance firms.
Immediately following the appointment, the joint administrators completed a sale which included the majority of the group’s business and assets to RunMyCar Ltd, a subsidiary of Redde Northgate, safeguarding almost 2,350 roles across 80 sites including repair garages and back office functions.
The sale out of administration included 77 repair sites and three office locations. However, 540 roles have been made redundant as 30 sites were closed.
Rob Lewis, PwC partner and joint administrator, said: ‘As with many other businesses, the group had to weather major financial fallout due to the economic impact of Covid-19, which meant that trading volumes were significantly reduced.
‘Against that backdrop, the sale announced today reflects a significant positive outcome for the business, and we are especially pleased to have safeguarded 2,350 roles including apprentices, mechanics and technicians.’
Rachael Wilkinson, PwC director and joint administrator, said: ‘Companies across the automotive sector are still recovering from an extended period where activity ground to a halt, significantly depleting cash reserves.
‘Some are only reaching a fraction of pre Covid-19 volumes despite reopening outlets. Consequently, the sector is set for a make or break rebalancing period over the next few months. Refreshed lending agreements, cash conservation and supply chain management will be key.’