JD Classics, what have they been up to?
Discussion
gothatway said:
Any opinions as to what effect this will have on the classic car market in general ? (I plan to neither buy nor sell, and I'm at the other end of the market anyway, so I ask merely out of interest).
Non whatsoever.The market is typically cooling anyway heading towards winter and uncertainties surrounding the economy Brexit interest rates etc etc affecting prices.
_Sorted_ said:
Small consideration in scheme of things, but wonder if the tin eared specialist press will now report on JD Classics with the advertising gravy train and editorial loaner cars now terminated.
Starting to trickle out from other sites.https://www.autoclassics.com/posts/news/jd-classic...
http://www.maldonandburnhamstandard.co.uk/news/nor...
local paper said:
The company have stated he individuals involved in these irregularities left the business in June this year, at which point a new management team was put in place, which is reported to have made “considerable progress” in stabilising the business and improving operations.
...
In April this year, Essex Life Magazine named the company’s former owner Derek Hood, who ran the company since 1987, the 30th richest person in Essex. He left the company in June.
...
In April this year, Essex Life Magazine named the company’s former owner Derek Hood, who ran the company since 1987, the 30th richest person in Essex. He left the company in June.
silentbrown said:
lowdrag said:
Guards are at the premises and owners seeking to recover their cars are not being allowed in. One collector went last week to recover three of his and was refused entry.
Blimey. Vehicles being restored, or sale-or-return?Anyone with cars on the premises on sale or return should get their solicitors onto the administrators case ASAP.
James P said:
silentbrown said:
lowdrag said:
Guards are at the premises and owners seeking to recover their cars are not being allowed in. One collector went last week to recover three of his and was refused entry.
Blimey. Vehicles being restored, or sale-or-return?Anyone with cars on the premises on sale or return should get their solicitors onto the administrators case ASAP.
The matter is complicated when there are monies owed for work on the cars, but that doesn't alter the owners' rights to recover them (subject to paying what is owed).
Some facts amongst the speculation
1. Lloyds Bank appointed the Administrators to protect its own position
2. One of the grounds for administration was that the Company was unlikely to be able to pay its debts.
3. It was unlikely to pay its debts because Mr Tuke was suing it for sums in excess of £40m as a result of fraudulent transactions, not "financial irregularities" which the press release states. The £9m mentioned earlier relates to only one of the five cases issued by Tuke.
4. Hood was fired and did not leave peaceably
5.The company has no prospect of being able to pay all its debts since it is clear from the published accounts that it owes gigantic sums to the banks and will inevitably go bust after the pantomime of administration is over. A completely different company may or may not take over the name but not the debts.
6. Hood is a very rich man but faces parallel claims from Mr Tuke as well as an even bigger one from Charme.
1. Lloyds Bank appointed the Administrators to protect its own position
2. One of the grounds for administration was that the Company was unlikely to be able to pay its debts.
3. It was unlikely to pay its debts because Mr Tuke was suing it for sums in excess of £40m as a result of fraudulent transactions, not "financial irregularities" which the press release states. The £9m mentioned earlier relates to only one of the five cases issued by Tuke.
4. Hood was fired and did not leave peaceably
5.The company has no prospect of being able to pay all its debts since it is clear from the published accounts that it owes gigantic sums to the banks and will inevitably go bust after the pantomime of administration is over. A completely different company may or may not take over the name but not the debts.
6. Hood is a very rich man but faces parallel claims from Mr Tuke as well as an even bigger one from Charme.
jonah35 said:
Will people be personally suing Hood?
If your contract was with JD Classics Ltd and they go bust - tough. If your dealings were with Derek Hood personally, go ahead. Derek Hood was in the top 100 of the Sunday Times rich list with estimated assets of £120 million, but by the time Messrs Tuke and Charme have finished with him one would imagine that his assets will severely diminish. However, it seems the property in Malden belongs to Mrs Hood. I've been there, and it is pretty extensive.I speak as someone who has worked in this industry for over 40 years retailing similar cars to JD. I believe I also speak on behalf of the majority of the motor trade. Nobody has ever understood how Mr Hood became so 'successful' overnight. Some were initially taken in by his charm but it soon became obvious that the entire business didn't add up. It wasn't a case of IF this castastrophe might happen but WHEN.
Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
I don't comment on the well published litigation with Mr Tuke but I will say that in recent years this classic car industry has been entirely investment led. The real enthusiast is a rare species. The buyer today wants to know what the car will be worth tomorrow rather than any interest in originality or provenance. One can see how this fed Hood's greed.
This situation helps none of us and no doubt we will all be tarred with the same brush. Sad as there are still some dealers out there who still genuinely love the cars for what they are rather than what they are worth.
Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
I don't comment on the well published litigation with Mr Tuke but I will say that in recent years this classic car industry has been entirely investment led. The real enthusiast is a rare species. The buyer today wants to know what the car will be worth tomorrow rather than any interest in originality or provenance. One can see how this fed Hood's greed.
This situation helps none of us and no doubt we will all be tarred with the same brush. Sad as there are still some dealers out there who still genuinely love the cars for what they are rather than what they are worth.
lowdrag said:
jonah35 said:
Will people be personally suing Hood?
If your contract was with JD Classics Ltd and they go bust - tough. If your dealings were with Derek Hood personally, go ahead. Derek Hood was in the top 100 of the Sunday Times rich list with estimated assets of £120 million, but by the time Messrs Tuke and Charme have finished with him one would imagine that his assets will severely diminish. However, it seems the property in Malden belongs to Mrs Hood. I've been there, and it is pretty extensive.When the criminal litigation is finished, there's the possibility of Proceeds of Crime Act proceedings.
Paul-ns9vl said:
Nobody has ever understood how Mr Hood became so 'successful' overnight. Some were initially taken in by his charm but it soon became obvious that the entire business didn't add up. It wasn't a case of IF this castastrophe might happen but WHEN.
Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
Laundry?Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
Paul-ns9vl said:
I speak as someone who has worked in this industry for over 40 years retailing similar cars to JD. I believe I also speak on behalf of the majority of the motor trade. Nobody has ever understood how Mr Hood became so 'successful' overnight. Some were initially taken in by his charm but it soon became obvious that the entire business didn't add up. It wasn't a case of IF this castastrophe might happen but WHEN.
Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
I don't comment on the well published litigation with Mr Tuke but I will say that in recent years this classic car industry has been entirely investment led. The real enthusiast is a rare species. The buyer today wants to know what the car will be worth tomorrow rather than any interest in originality or provenance. One can see how this fed Hood's greed.
This situation helps none of us and no doubt we will all be tarred with the same brush. Sad as there are still some dealers out there who still genuinely love the cars for what they are rather than what they are worth.
Well said that man. We are a business just down the road from the JD headquarters, and I've always held the same opinion - something didn't seem right!Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
I don't comment on the well published litigation with Mr Tuke but I will say that in recent years this classic car industry has been entirely investment led. The real enthusiast is a rare species. The buyer today wants to know what the car will be worth tomorrow rather than any interest in originality or provenance. One can see how this fed Hood's greed.
This situation helps none of us and no doubt we will all be tarred with the same brush. Sad as there are still some dealers out there who still genuinely love the cars for what they are rather than what they are worth.
A real shame that a ‘successful’ local business & employer has gone this way.
On the one hand, they had some beautiful metal sitting around a showroom & workshop that I’d be happy living in, I only visited JD once and was gobsmacked by the place, the engine workshop was a thing of beauty, & they definitely made their mark on the classic car scene.
On the other you could argue that they played a significant part in fuelling the ‘bubble’ and a byproduct of that was making many cars unavailable to the common enthusiast.
On the one hand, they had some beautiful metal sitting around a showroom & workshop that I’d be happy living in, I only visited JD once and was gobsmacked by the place, the engine workshop was a thing of beauty, & they definitely made their mark on the classic car scene.
On the other you could argue that they played a significant part in fuelling the ‘bubble’ and a byproduct of that was making many cars unavailable to the common enthusiast.
TooMany2cvs said:
Paul-ns9vl said:
Nobody has ever understood how Mr Hood became so 'successful' overnight. Some were initially taken in by his charm but it soon became obvious that the entire business didn't add up. It wasn't a case of IF this castastrophe might happen but WHEN.
Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
Laundry?Regardless of how much funding he was able to find it is impossible to create the the profits he has accrued in an honest manner over such a short period of time.
Same old....
Big doesn't work.
This all smacks of Cap'n Bob in the 80's. All a house of cards. Loans and security based on other debentured assets.
Perhaps Hood should do the decent thing like Cap'n Bob did and "go over the side".
Still a big full page in this months C&SC mag - booked in late July..... I wonder when the press will wake up to this? And possibly look at other advertisers who owe 90days + for lush adverts?
As the man said a few posts ago, this will tarnish, nay, cover in s
te, all dealers in the classic trade......
Big doesn't work.
This all smacks of Cap'n Bob in the 80's. All a house of cards. Loans and security based on other debentured assets.
Perhaps Hood should do the decent thing like Cap'n Bob did and "go over the side".
Still a big full page in this months C&SC mag - booked in late July..... I wonder when the press will wake up to this? And possibly look at other advertisers who owe 90days + for lush adverts?
As the man said a few posts ago, this will tarnish, nay, cover in s
te, all dealers in the classic trade......singlecoil said:
lowdrag said:
...it seems the property in Malden belongs to Mrs Hood...
Well I must say I am very surprised at thatnot
I wonder where their tropical bolthole will turn out to be?
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