BBC1 (Quest) - Scrappers
Discussion
If I get this right - they've crashed and phoenixed the yard, possibly leaving many creditors high 'n dry, but now they're tooling about in bigger, newer motors and anxious to get more cash rolling in...
Fair play if they've followed all the rules (no doubt advised by some well-practised accountants) but it's all a bit nefarious sounding.
As for elf 'n safety - just watch the lads in the yard wandering near the grabber without any headgear.
However, there's so much opportunity in a trade like that...
Fair play if they've followed all the rules (no doubt advised by some well-practised accountants) but it's all a bit nefarious sounding.
As for elf 'n safety - just watch the lads in the yard wandering near the grabber without any headgear.
However, there's so much opportunity in a trade like that...
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
Not so long ago it was probably more cost effective to just sell as mixed scrap because scrap values were high and it was more trouble and cost than it was worth to strip down, test, store and possibly sell the bits.The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
Scrap values are well down now on a few years ago so the playing field has changed.
Yet again I bow down to Terry's financial wizardry.
Anyone who can generate the lifestyle he does off the back of a loss-making business with such big overheads and such little apparent turnover must be a genius.
He must be pretty sharp at marketing too to keep attracting customers of any sort given the utterly dire reputation the businesses appear to have both as buyers and sellers. And that was before the liquidation.
And keeping the health and safety guys away takes some effort too given he offers such easy wins to them...
Still a bit tame compared to some other players in the scrap and salvage game though.
Anyone who can generate the lifestyle he does off the back of a loss-making business with such big overheads and such little apparent turnover must be a genius.
He must be pretty sharp at marketing too to keep attracting customers of any sort given the utterly dire reputation the businesses appear to have both as buyers and sellers. And that was before the liquidation.
And keeping the health and safety guys away takes some effort too given he offers such easy wins to them...
Still a bit tame compared to some other players in the scrap and salvage game though.
over_the_hill said:
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
Not so long ago it was probably more cost effective to just sell as mixed scrap because scrap values were high and it was more trouble and cost than it was worth to strip down, test, store and possibly sell the bits.The guy must have been a bit of a muppet though if he was letting stuff go out as mixed scrap rather than pulling components first. Also they still arent doing a lot of sorting so just pushing out bottom end contaminated scrap and piles of hacked about engines.
Big delta in the cost of bits vs. Parts, selling a bare untested engine for a multiple of the retail of a whole car.
Scrap values are well down now on a few years ago so the playing field has changed.
I counted around 15 employees, it'd be hard to get their kind of lifestyle out of a 15 employee, £1 million turnover business.
Something doesn't quite add up
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
Pre-pack admin, order loads of new gear rip the serial number off anything of value, buy it back from the administrator for peanuts, tell the tax man to take a hike and treat everyone to a new car with the money you ripped off from suppliers and the government, scumbags of the highest order.berlintaxi said:
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
Pre-pack admin, order loads of new gear rip the serial number off anything of value, buy it back from the administrator for peanuts, tell the tax man to take a hike and treat everyone to a new car with the money you ripped off from suppliers and the government, scumbags of the highest order.Genuinely interested.
Silent1 said:
berlintaxi said:
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
Pre-pack admin, order loads of new gear rip the serial number off anything of value, buy it back from the administrator for peanuts, tell the tax man to take a hike and treat everyone to a new car with the money you ripped off from suppliers and the government, scumbags of the highest order.Genuinely interested.
Pre-pack administration.
Buy loads of stuff. Go bust before the invoices are due to be paid. (Usually on a Friday, or around a bank holiday). The administrators declare on Monday that there were no other interested parties, so the best thing to do is to "sell" the business back to the original owners at a knock down price so they can carry on being terrible at what they were doing.
Winners - owners, administrators, possibly employees
Losers - everyone else, especially suppliers.
Occasionally there is a legitimate business reason this has happened - flood/fire/massive bad debt. But more often than not it is simply unscrupulous owners milking a legal, but very unethical process.
Buy loads of stuff. Go bust before the invoices are due to be paid. (Usually on a Friday, or around a bank holiday). The administrators declare on Monday that there were no other interested parties, so the best thing to do is to "sell" the business back to the original owners at a knock down price so they can carry on being terrible at what they were doing.
Winners - owners, administrators, possibly employees
Losers - everyone else, especially suppliers.
Occasionally there is a legitimate business reason this has happened - flood/fire/massive bad debt. But more often than not it is simply unscrupulous owners milking a legal, but very unethical process.
berlintaxi said:
Silent1 said:
berlintaxi said:
Jonesy23 said:
Even the son has a shiny Merc. Lots of cash seems to have managed to be made from a business that crashed, burned then rose again with all the same staff equipment and stock.
Pre-pack admin, order loads of new gear rip the serial number off anything of value, buy it back from the administrator for peanuts, tell the tax man to take a hike and treat everyone to a new car with the money you ripped off from suppliers and the government, scumbags of the highest order.Genuinely interested.
I guess a lot of companies try and guard against this by putting hidden markings/serials on machinery they sell?
Though doing a phoenix / prepack is often only a great idea if your creditors are the sort of people who rely on the legal process and accept being screwed for their money. Which isn't the most common thing in the salvage industry.
HMRC are probably the biggest losers and other trade debtors most likely got their cash one way or another.
HMRC are probably the biggest losers and other trade debtors most likely got their cash one way or another.
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