1car1 Going into Administration...
Discussion
ummm sorry to inteupt... but there is no buyer for 1car1... it is in administrationa nd the company is going to be wound down within 5 weeks.. it's ok asking who the administrators are... which are price water house coopers... but there are 800 people losing their jobs.. that should be the main concern and the customer who at present are on the road with cars that might not legally be allowed to be used anymore.
Agreed, 1car1 is in the process of being wound up. I understand some of the staff have already been made redundant and that the remainder will follow unfortunately.
Customers business is being transferred to other rental companies.
Sad but not surprising with the current state of the industry.
Customers business is being transferred to other rental companies.
Sad but not surprising with the current state of the industry.
ye totalluy agreed my partner is one of those who will be losing his job... which is sad... unfortunately they have only just found out today... the company owe over 40 million to their finaciers.. they were not allowed to tell the customers and also they are not allowed to rent out anymore cars which is pointless ending their rental agents into work.. the worst thing is that they were told they might not get paid but happily price water house coopers have promised to do all they can to guarentee that the workers will get a full months pay.
babeistoo said:
the company owe over 40 million to their finaciers..
That is their just short term funding, their total liabilities were over £116m but something doesn't add up, their total assets were over £128m and they made £12m profit last year.I appreciate they are last years figures and the industry has had a very tough year but something is not right. I suspect they have done an "Antony Worrell Thompson" and refused to give guarantees to the banks.
Wouldn't surprise me if they didn't resurrect the brand and are simply using the banks as an excuse to get shot of some bad debt. In fact I don't think 1car1 Ltd has actually gone has it? As most of the business was run through their other company, with 1car1 as the trading name.
Edited by 1 on Wednesday 18th March 22:05
This company, like many others, has problems with cash flow. All too often people who run companies (large and small) fail to recognise the importance of cash management and even though the company is profitable unless it can collect cash in a timely manner and pay creditors when they are due the company will fail.
Their problem was that they couldn’t collect the money from the customers fast enough to pay the bills from their suppliers and the HP charges.
My guess is that this company could simply fold and its assets sold off if there isn’t a way of changing the business model so cash collection can be substantially improved – one way might be to use invoice factoring but its expensive and will reduce the profitability.
Their problem was that they couldn’t collect the money from the customers fast enough to pay the bills from their suppliers and the HP charges.
My guess is that this company could simply fold and its assets sold off if there isn’t a way of changing the business model so cash collection can be substantially improved – one way might be to use invoice factoring but its expensive and will reduce the profitability.
Gibson70 said:
This company, like many others, has problems with cash flow. All too often people who run companies (large and small) fail to recognise the importance of cash management and even though the company is profitable unless it can collect cash in a timely manner and pay creditors when they are due the company will fail.
Their problem was that they couldn’t collect the money from the customers fast enough to pay the bills from their suppliers and the HP charges.
My guess is that this company could simply fold and its assets sold off if there isn’t a way of changing the business model so cash collection can be substantially improved – one way might be to use invoice factoring but its expensive and will reduce the profitability.
With respect, factoring - if the quality of the debt is good enough - is definitely not expensive these days. In many cases it can cost no more than, say, a bank overdraft. It is also generally accepted to be cheaper than not trading any longer.Their problem was that they couldn’t collect the money from the customers fast enough to pay the bills from their suppliers and the HP charges.
My guess is that this company could simply fold and its assets sold off if there isn’t a way of changing the business model so cash collection can be substantially improved – one way might be to use invoice factoring but its expensive and will reduce the profitability.
1 said:
babeistoo said:
the company owe over 40 million to their finaciers..
That is their just short term funding, their total liabilities were over £116m but something doesn't add up, their total assets were over £128m and they made £12m profit last year.I appreciate they are last years figures and the industry has had a very tough year but something is not right. I suspect they have done an "Antony Worrell Thompson" and refused to give guarantees to the banks.
Wouldn't surprise me if they didn't resurrect the brand and are simply using the banks as an excuse to get shot of some bad debt. In fact I don't think 1car1 Ltd has actually gone has it? As most of the business was run through their other company, with 1car1 as the trading name.
Edited by 1 on Wednesday 18th March 22:05
Having been caught out with a client with a paper asset base of £28m and realisable assets of £27k (yes, really), the headline balance sheet asset figure is meaningless without more detail.
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