Racheal Wilkinson and Rob Lewis of PwC have been appointed joint administrators of Nationwide Accident Repair Services and several of its subsidiaries.
The Whitney-based business operates a network of garages around the country, assisting the accident repair market for many of the UK’s largest insurance firms.
The joint administrators have now completed a sale which included a majority of the group’s assets to RunMyCar Ltd., a subsidiary of Redd Northgate plc., saving almost 2,350 positions across 80 sites.
However, 30 sites were closed following the sale and 540 roles have been made redundant.
Lewis said: ‘‘“As with many other businesses, the group had to weather major financial fallout due to the economic impact of COVID-19, which meant that trading volumes were significantly reduced.
‘‘Against that backdrop, the sale announced today reflects a significant positive outcome for the business, and we are especially pleased to have safeguarded 2,350 roles including apprentices, mechanics and technicians.’’
He added: “Sadly we have had to make 540 staff redundant. We are making every effort to support those workers. This includes providing guidance for employees regarding JobCentre Plus and Redundancy Payments Service processes.”
Wilkinson said: ‘‘Companies across the automotive sector are still recovering from an extended period where activity ground to a halt, significantly depleting cash reserves. Some are only reaching a fraction of pre COVID-19 volumes despite reopening outlets.
‘‘Consequently, the sector is set for a make or break rebalancing period over the next few months. Refreshed lending agreements, cash conservation and supply chain management will be key.’’