RAC Industry news
The industry has hit out over the failings of WR Refrigeration following the release of the administrator report, which exposed significant financial discrepancies in the operation.
Administrator PWC’s Proposals to Creditors shows 29 suppliers are owed over £100,000 and two are owed over £2.5 million by collapsed contractor.
The report also revealed that 50 offers were made for parts of WR Refrigeration, but Integral’s formal offer, for £1.8 million up-front for half of the business was judged the most practical. PWC goes on to say that despite the wealth of approaches, ‘it was clear there was no credible interest in the whole UK group.’
The Statement of Proposals from PWC also reveals that the bank pulled plug before HMRC served winding-up order.
PWC said discussions had been initiated because of the ‘difficult trading conditions’ which had led to a £1.5 million funding call to cover HMRC’s demands and amidst ‘some concerns that the underlying financial position and profitability may not be appropriately and fully reflected.’
“Does anybody consider the administrator has done a good job? Integral have picked up a potential £29M business for £1.8M and of that only £600k is left for the creditors. One might also ask where the credit agencies were in all this? I am not an accountant and I do not know about these things but something just doesn’t seem to add up!”
“Lets see who’s next to fall at the hurdle these companies can not carry on what they are dong they are making the lives of there engineers hell . They are pushing the majority of install / commissioning engineers to be self employed so they can use and abuse as they like . Then the service engineers are just sold with the service contract as it passed from contractor to contractor by the retailer.”
“Sad to say all the “people at the top” from WR have got nice new jobs!!!!”
14 January 2014 | By Julian Milnes
reposted from racplus.com