Classic car specialists JD Classics rescued from administration
20 Septembre 2018 - auto classics
JD Classics has been rescued from administration, with its new owners Woodland Mortimer headed up by incumbent CEO Jean-Marc Gales
Troubled classic car specialist JD Classics has been rescued from administration, with a new buyer secured and approximately 60 jobs at its Maldon headquarters saved.
Less than two weeks ago JD Classics, which specialises in the restoration, sale and race preparation of classic vehicles, had been plunged into administration due to 'financial irregularities'.
These issues stemmed from a number of ongoing investigations into transactions carried out under former CEO Derek Hood, who was replaced in June by former Lotus CEO Jean-Marc Gales.
Despite facing losses in the region of £25 million according to Sky News reports in June, administrators Alvarez & Marsal Europe LLP (A&M) secured a buyer for JD Classics as a going concern, Woodham Mortimer Ltd.
Woodham Mortimer is also the name of a village a stone's throw from JD Classics headquarters in Maldon. Founded on the day JD Classics fell into administration and headed by Gales, it appears the current JD Classics CEO has been instrumental in its rescue. Private equity fund HPS Investment Partners LLC is effectively the new owner, as it controls Woodland Mortimer Ltd.
'Despite the difficulties of the recent past, JD Classics remains a world-class organisation with a workforce of dedicated and highly talented individuals,' said Gales.
'We will continue to grow and develop the business, and we look forward to a future at the absolute pinnacle of classic car restoration, historic competition and trading.
Gales has reputedly identified a number of areas ripe for cost-cutting, though its Maldon restoration centre appears to remain a key part of its future business strategy.
'This deal will ensure that the JD Classics business can continue to grow and prosper as a world class business,' added A&M managing director Mark Firmin.
'The firm benefits from an outstanding collection of cars, a bespoke restoration facility, and a team of highly skilled craftsmen and engineers.'