A E Smith Auto's Limited (04594555): administration
- Status
- Administration ended
- Administration began
- 2012-09-25
- Administrators
- Stephen John Evans, William Antony Batty
- Administrators' firm
- Antony Batty
- Incorporated
- 2002-11-19
- Location
- Brentwood
- Industry
- 45200 Maintenance and repair of motor vehicles
Why it went into administration
- Bad debts / customer insolvency
- Property / lease costs
- Management failings / irregularities
- Rising interest rates
- Competition / price pressure
From the administrators' statement
The Company was formed in November 2002 by Adrian {known as Andy) Smith and Jeanette Smith, (Mrs and Mrs Smith); both are equal shareholders and directors. The Company traded from a workshop and office space in Brentwood, Essex The property is owned by Mr & Mrs Smith via a partnership agreement The Company did not have a formal lease arrangement with the partnership.
The Company undertook all forms of servicing and repairs work to both commercial and private vehicles. Both Mr & Mrs Smith worked in the business. Mrs Smith dealt with the book-keeping, accounts and administration, whilst Mr Smith undertook the majority of the repairs/servicing work, The Company also employed a trainee/apprentice who was able to undertake some mechanic tasks alone but is not qualified to undertake all works.
The Company held a number of credit lines with Barclays Bank Pic that were re-organised in early 2012. Both the Company overdraft and credit card Facility was reduced by half and converted Into a loan. This caused a detrimental effect on the cash-flow. Furthermore, Mr Smith was diagnosed with a serious iliness that has affected his ability to work. During Apni 2012, as an example, due to the iliness Mr Smith was unable to attend work for several weeks which resulted in very minimal sales for the month.
Administrators' statement of proposals (2012-11-28) · Companies House register