The classic car world has been given a serious reality check with the news announced yesterday that JD Classics is now in the hands of administrators.
London Solictors Healys LLP are concerned that buyers, sellers and even dealers are simply not paying enough attention to detail when transactions are being carried out.
JD Classics has been prominent leader in the sector for quite some time, restoring classic cars. The business employs around 50 – 60 staff with a range of classic cars of its own.
The company website has now officially delivered the message of:
Richard Beard, Mark Firmin and Richard Fleming were appointed Joint Administrators of JD Classics Holdings Limited on 7 September 2018, and JD Classics Limited and Daytona Bidco Limited on 10 September 2018 (together “the Companies”). The business and property of the Companies are being managed by the Joint Administrators who, together with their staff, act as agents of the Companies and contract without personal liability.
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Clive Robertson leader of the firm’s classic car group said:
“The administrators, Alvarez & Marsal are reportedly hoping to find a buyer for the business. In the meanwhile, there will be considerable concern amongst a diverse group of parties who will be affected, including staff, investors, lenders, trading partners and not least, those with cars at the Mayfair and Maldon premises for sale or restoration.
“There had been rumours of financial irregularity at the business which were apparently confirmed in March of this year when judgement in the case of Michael Tukes v JD Classics was given, there being several cases lodged by the same claimant still pending. It may be some time before the full picture emerges, so it could be premature to be seeking to know what lessons, if any, can be learnt, but it may be no more simple than saying, that in such a relatively new and fast-growing industry, balance and reason may have been left behind, so that more deliberation and responsibility needs to be brought to transactions by dealers, buyers and sellers.”
“There has probably not been a more important time to make use of skilled and established legal advice. You’d not buy a house without a conveyancing solicitor, so why spend, potentially, more money without similar professional advice and guidance?”