LSUK Goes into Administration
Car parts wholesaler LSUK has gone into administration following a failed takeover attempt by competitor Euro Car Parts. All 53 branches will close, with 600 workers being made redundant. The new owners reluctantly came to the decision “after a considerable amount of non-stop work and investment into LSUK” during the five days following Euro Car Parts’ takeover bid over on 29 September. Despite their efforts Euro Car Parts’ directors realised that they had no option but to place LSUK into administration with effect from Monday 6 October 2008. This includes all 53 LSUK Branches, including MI Diesel Products, Protech Automotive (UK) and Yeovil Rewind.
In a statement on the failure of the deal Euro Car Parts explained its reasons for putting LSUK into administration: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.”
Euro Car Parts has now placed the acquisition company it formed to buy LSUK/Pinco 1555 Ltd (ECP Logistics Limited) into the hands of Tenon Recovery. The administrators are reportedly already in contact with several interested parties.
Five days earlier, before the deal fell apart, the tone was distinctly more optimistic. At the time of the initial deal Euro Car Parts chairman, Sukhpal Singh said: “Euro Car Parts has proved its ability to grow organically in difficult times. The purchase of LSUK will further accelerate our expansion and support our quest to provide the ultimate in quality and service to the automotive aftermarket.”
He added: “Previous acquisitions by Euro Car Parts have shown our willingness to invest in the staff and fabric of companies, so as to bring them up to the same market-leading standards that have gained Euro Car Parts many awards for customer service throughout the industry.”
LSUK Divisional Director, Shaun Darke, who spearheaded the LSUK team forming this new partnership said: “As far as I was concerned, despite several parties showing a real interest in LSUK, the company that stood head and shoulders above the rest was Euro Car Parts. As a demonstration of their commitment and focus on the acquisition of LSUK, they called in over 30 ECP directors, senior managers and advisers. Everything necessary was actioned over the weekend and the entire acquisition process took no more than 48 hours.”