COVENTRY MESSAGE BOARD

Car parts supplier Uniparts Automotive is believed to be on the verge of appointing administrators – putting 1,600 jobs at risk.



It has been reported that the company, which has a network of 200 branches, has filed a notice of intention to appoint KPMG to act as administrator following protracted trading difficulties.

Unipart Automotive has a base in Lockhurst Lane, in Foleshill.

The business is majority-owned by H2 Equity Partners, a Dutch private equity firm, having been sold by Unipart Group in 2011.

Sources have claimed the company was hopeful of securing a rescue deal prior to KPMG’s formal appointment that would preserve most, if not all, of the 1,600 jobs - saying a deal could be struck before the end of the week.

Just two months ago, it was also reported that the firm had completed a multi-million pound refinancing designed to return it to profitability after years of losses.

Coventry car parts firm in administration

Coventry car parts firm Unipart Automotive has closed after attempts to rescue the struggling business failed.

Administrators KPMG have been appointed to the company - which has headquarters in Solihull and operates a network of 180 branches and distribution hubs, employing 1,813 people.

Part of the business was immediately sold in a joint deal to Andrew Page, one of the UK’s largest distributors of car parts, workshop equipment, tools and diagnostics, and The Parts Alliance.

The deal will see Andrew Page acquire 21 branches and The Parts Alliance take 12 - with a total of 361 staff employed across the sites being transferred to the new employers.

However, the remainder of the Unipart Automotive business, including the city’s base in Lockhurst Lane, Foleshill, have ceased trading with the loss of 1,244 staff including nine workers in Coventry.

Mark Orton, partner at KPMG and join admininstrator, said: “Despite intensive efforts over recent weeks, a sale of the whole Unipart Automotive business could not be reached and a buyer could only be found for 33 of the sites on a going concern basis.

''Unfortunately, the business had been experiencing financial stress for a number of years, so the level of cash and further operational restructuring required to rescue a more substantial part of the business posed too much risk for the most interested parties.

“Our team of employment specialists will be supporting all staff on completing redundancy forms and putting them in touch with jobseeker services. We will now be reviewing what options are available for the remainder of the business, such as selling leasehold interests.”

The company also directly supports over 700 independent, owner-operated garages through its Unipart Car Care Centre programme, in additon to having 19 franchisees. They will continue to operate as normal.

Union slams Unipart claiming staff treated 'so shoddily'



A workers union has criticised logistic and technology giant Unipart for the way it says the firm has treated staff over plans to relocate operations from a Coventry site to one 35 miles away. Unite say the company has treated staff "shoddily".

Plans to move the Jaguar Land Rover contract from Baginton to Mercia Park in Swadlincote have been in the pipeline for several years. Staff claim they were initially told early on redundancy may be an option should they not wish to relocate, a claim Unipart denies.

But with the relocation set to be complete this week, there are still staff whose futures are uncertain, with many saying commuting to the new site on the Leicestershire and Derbyshire border would be a 70 mile roundtrip and the equivalent of a pay decrease.

Meanwhile, it was claimed this week, some Baginton staff have been offered a position at the company's Nuneaton site, but it is alleged some staff have been offered their existing terms and conditions while others are being told they must take new terms which are not as beneficial.

It is also claimed the company is looking at making positions at Nuneaton redundant in order to 'make space' for staff from Baginton. Staff are being supported by Unite regional officer Jason Richards.

He told CoventryLive: "Staff at Unipart's facility in Baginton have been shoddily treated. Many who are unable to relocate still don't know if they will receive a redundancy package despite, in many cases, decades of service.

"They deserve better and Unite is continuing to fight for the best outcomes for our members across the West Midlands."

One member of staff who didn't want to be named said: "We are all scared. Staff have been told if they don't turn up to Mercia on Monday the company will assume they've resigned.

"I've worked there for years. Nobody has got back to me and I have no clue what happens to me after Friday. It's a disgrace."

A Unipart spokesman previously told CoventryLive: "We are in consultation with colleagues at our Nuneaton site, and we continue to be in consultation with colleagues at our Baginton and Honeybourne sites. It would be inappropriate to comment further at this time."