COLLAPSED Ford dealership Holiways will only be able to raise less than a third of what it owes when it sells it assets, according to figures released by its administrators.
The Ford dealership, which is shedding all 81 staff after going into administration last month, sold new and used cars and ran a servicing and repairs operation from two sites in Newton Aycliffe and Bishop Auckland.
A report filed with Companies House said that the business had assets with a book value of £3.5m, including property, vehicles and parts, but these were only expected to realise £2.5m. The business owes more than £8.7m to creditors including Barclays Bank, Ford and the taxman. Ford is taking back its vehicles.
Mark Firmin and Howard Smith, of KPMG’s restructuring practice, appointed as joint administrators by FCE Bank in August.
The Newton Aycliffe-based business sold its dealerships in Durham and Hartlepool to Gateshead’s Vertu Motors at the end of June for £3.5m.
Holiways was hit hard by the end of the scrappage scheme and the impact of high fuel prices.