Administrators called for ailing classic car dealer as legal fallout continues
Those who frequent the classic car world, indeed even those who spend too long daydreaming in the PH classifieds, will be familiar with JD Classics. With a stocklist frequently crammed with the most desirable road and race cars, plus considerable motorsport success both at home and abroad, JD resided as one of the UK's most notable classic dealers.
It's therefore fairly sad to report news of the company's administration; a successful lawsuit had been filed against previous owner Derek Hood (you'll remember he was replaced by former Lotus CEO Jean-Marc Gales) and, unable to find a buyer in the past few weeks, administrators Richard Beard, Mark Firmin and Richard Fleming were called in for JD Classics.
With showrooms in both Maldon and Mayfair, JD employs around 60 people and owns in the region of 110 cars. In a sale document, administration firm Alvarez & Marsal said: "the opportunity to acquire JD reflects the need to return value to stakeholders following the discovery of certain financial irregularities within the business.
"Whilst an investigation into these matters is ongoing, a new management team is now in place and the individuals associated with these irregularities are no longer working in the business." So there are some positives to take there, but it does paint a rather bleak picture.
The situation is obviously ongoing at the moment, Alvarez & Marsal clearly keen to seek a buyer out for the company. Expect more news as the administration process continues - we'll keep you posted.
Naturally PH has been discussing this situation at length since the original lawsuit claims - see the full thread here.