PwC administrators help save 2,300 automotive repair jobs
PwC - a multinational professional services network - has been appointed by Nationwide Accident Repair Services to oversee the sale of the company alongside a number of its subsidiaries.
Founded in 1908, Nationwide Accident Repair Services is a car repair business which offers its customers in the UK vehicle services. Each year the company deals with more than 300,000 repair incidents a year at its 115 repair centres.
The company also offers a UK wide Mobile Repair network, a UK wide mobile glass repair and replacement network, 21 Rapid Repair centres and an accident management and claims handling service. These services are reported to make it the largest comprehensive automotive repairer in the UK.
With the effects of COVID-19 having significant impact on business during 2020, experienced a severe deplete in its cash reserves during the pandemic. Due to this depletion, the company appointed PwC’s Rachael Wilkinson and Rob Lewis as joint administrators.
Following their appointment, the two immediately completed a sale for the majority of its business and assets to RunMyCar, a subsidiary of Redde Northgate. The sale safeguarded more than 2,300 roles across 80 sites in the UK. However, 540 roles were made redundant due to the closure of 30 sites.
“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,” commented Lewis. “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.”
In a statement made by PwC the company believes that Nationwide Accident Repair Services is in a strong position to face the rebalancing of the industry, with refreshed lending agreements, cash conservation and supply chain management being key.
“Companies across the automotive sector are still recovering. 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,” concluded Wilkinson.
- PwC’s survey shows Middle East CEOs remain upbeat on growthLeadership & Strategy
- CEOs expect fall in global economic growth, says PwC surveyLeadership & Strategy
- 5 Mins With: Kathryn Kaminsky Vice Chair Trust Solutions PwCLeadership & Strategy
- Interview: Driving female leadership in the Middle EastSustainability