TVR Workers read this! NS might not be so lucky?
Discussion
Smolenski’s sale of the production side of TVR just before it went bust achieves his aim of holding on to the name and moving production offshore without the hassle and expense of closing down the Blackpool plant.
But he may face two obstacles. First, there are strict rules covering the disposal of businesses: a loss-making offshoot cannot be simply off-loaded in the expectation that it will promptly go bust. The buyer has to give an undertaking that the acquired business can meet its liabilities. And second, the Transport & General Workers’ Union is putting pressure on Smolenski to foot the full cost of redundancy and holiday pay owed to the staff who remained when Blackpool Automotive went under: this is thought to total as much as £3m. By the middle of last year, Smolenski was reckoned to have shelled out almost £30m on TVR, including the sum he paid Wheeler. The bill is now reckoned to be approaching £40m. Meeting redundancy costs will push that even higher. The baby-faced oligarch may find it much harder than he thought to shed the legacy of TVR.
in an article...
But he may face two obstacles. First, there are strict rules covering the disposal of businesses: a loss-making offshoot cannot be simply off-loaded in the expectation that it will promptly go bust. The buyer has to give an undertaking that the acquired business can meet its liabilities. And second, the Transport & General Workers’ Union is putting pressure on Smolenski to foot the full cost of redundancy and holiday pay owed to the staff who remained when Blackpool Automotive went under: this is thought to total as much as £3m. By the middle of last year, Smolenski was reckoned to have shelled out almost £30m on TVR, including the sum he paid Wheeler. The bill is now reckoned to be approaching £40m. Meeting redundancy costs will push that even higher. The baby-faced oligarch may find it much harder than he thought to shed the legacy of TVR.
in an article...
www.pistonheads.com/gassing/topic.asp?p=1&f=13&t=342335&h=0
Edited by touching cloth on Sunday 7th January 20:17
As posted prev... www.pistonheads.com/gassing/topic.asp?p=1&f=13&t=342335&h=0
tvrbob said:
johnnytvr said:
...in an article...
Why the secrecy? What is your source? [quote=www.timesonline.co.uk/article/0,,2095-2534377.html]
But he may face two obstacles. First, there are strict rules covering the disposal of businesses: a loss-making offshoot cannot be simply off-loaded in the expectation that it will promptly go bust. The buyer has to give an undertaking that the acquired business can meet its liabilities. And second, the Transport & General Workers’ Union is putting pressure on Smolenski to foot the full cost of redundancy and holiday pay owed to the staff who remained when Blackpool Automotive went under: this is thought to total as much as £3m. By the middle of last year, Smolenski was reckoned to have shelled out almost £30m on TVR, including the sum he paid Wheeler. The bill is now reckoned to be approaching £40m. Meeting redundancy costs will push that even higher. The baby-faced oligarch may find it much harder than he thought to shed the legacy of TVR.
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