Euro Car Parts U-turns on LSUK deal
Administrator moves in days after the company looked safe
Euro Car Parts which rapidly acquired LSUK last week has reversed its decision and has put the company into administration after all.
The company snapped up the ailing car parts firm in a deal struck over a weekend and temporarily it appeared that LSUK’s 600 jobs would be safe. However, it has now concluded that the deal is a ‘futile operation’ and LSUK has been placed into administration In a statement the company said: “The initial acquisition of LSUK had to be made very quickly to protect the 600 strong staff. The due salaries and rent were therefore paid with immediate effect. “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.” “Euro Car Parts deeply regrets what has happened, but to continue any longer with LSUK, as it currently stands, was unfortunately a futile operation.” Now the administrators, Tenon Recovery, are in charge of the business and its future is uncertain. However, according to Euro Car Parts Tenon is ‘in contact with several interested parties’. © Crimson Business Ltd. 2008