# W.G.Newman(Garage)Limited (00857089)

> Why UK company 00857089 went into administration, from the administrators' statement filed at Companies House, by companydig. Interactive version: https://companydig.co.uk/company/00857089

- **Status:** Administration ended
- **Administration began:** 2020-05-22
- **Administrators:** Andrew Graham Mackenzie, Richard Kenworthy
- **Administrators' firm:** Begbies Traynor
- **Incorporated:** 1965-08-18
- **Location:** Leeds
- **Industry:** 45200 Maintenance and repair of motor vehicles

## Why it went into administration

- Loss of a key customer, supplier or contract
- Management failings / irregularities
- COVID-19
- Cash flow / liquidity pressure

## From the administrators' statement

The Company was incorporated in 1965 by Mr William Newman (late husband of current director and shareholder Gail Newman). The business was founded as an auto repair centre and has steadily grown over a number of years, having enjoyed a good reputation in the local area. By the date of insolvency, it employed 27 people operating from a single site in Long Eaton, Nottingham; the site being owned by Gail Newman.

Despite the Company having low margins, it traded well for many years, benefitting from a number of contracts or agreements with major insurers. However, in recent years, some contracts have been lost and work has generally slowed. In addition, there appears to have been a number of issues within the business which have caused inefficient working practices. We are still investigating the exact reasons for the loss of contracts and inefficiencies.

As aresult of this, there was a sustained period of cash consumption. In order to deal with the resultant cash flow pressure, duplicate invoices were raised and other concerning practices were undertaken which caused unusual activity on the invoice finance facility provided by the Company’s secured creditor, Close Invoice Finance Limited (“Close”).

Statement of proposals: https://find-and-update.company-information.service.gov.uk/company/00857089/filing-history/MzMwODYwNzM2OWFkaXF6a2N4/document?format=pdf&download=0
Companies House register: https://find-and-update.company-information.service.gov.uk/company/00857089

Contains public sector information from Companies House, licensed under the Open Government Licence v3.0.