Kicked in the teeth

Oct 7 2008 by Les Stewart, Perthshire Advertiser Tuesday

STUNNED staff turned up at the Perth branch of a leading car parts supplier yesterday morning to find themselves locked out and a notice on the door announcing that the company had ceased trading.

The bitter blow comes just days after LSUK, which operates from the Whitefriars Business Park in the city, was taken over by Euro Car Parts (ECP) Ltd.

It was announced last Wednesday that the London-based company had bought rival distributors LSUK’s 53 branches, including eight in Scotland, for an undisclosed sum.

And in a letter to the 10-strong Perth workforce, Sukhpal Singh, chairman and managing director of Euro Car Parts, stated: “I would like to take the opportunity to give reassurance on the future of LSUK and its subsidiaries.

“I regard LSUK as a fine business, with some valuable specialisms and dedicated staff, that has suffered from under-funding in the recent past.

“I will seek to develop the business over the coming years and provide the necessary financial stability.”

But the bombshell notice stated: “It is with great regret and due to unforeseen and exceptional circumstances beyond our control that, with effect from Monday, 6 October, 2008, this branch will cease to trade.

“We will be writing to you all in the next five days to advise you of your rights and any other entitlements.”

Those with any queries or seeking assistance were given a freephone number to call.

One furious employee, who didn’t want to be named, said yesterday: “We have been left in the lurch after being given assurances about our jobs from our new employer.

“This is a massive kick in the teeth for the workforce, some of whom have given decades of loyal service to the company.

“There has been absolutely no consultation whatsoever. Many of us have mortgages and families to look after.

“The devastating news couldn’t have come at a worse time, with the credit crunch and uncertainty over the banking system dominating the news headlines.

“We are in limbo at the moment and don’t know what’s going to happen.

“ECP painted a bright future for us. But it seems the only thing we can look forward to is signing on the dole.”

LSUK has 680 staff nationwide, with around 110 of them based at its head office in Sheffield.

A statement from ECP said: “After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with effect from October 6.

“Unfortunately it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.

“Euro Car Parts deeply regrets what has happened but to continue any longer with LSUK, as it currently stands, was unfortunately a futile operation.

Due salaries had been paid “with immediate effect” and LSUK has been placed in the hands of leading insolvency advisors Tenon Recovery.

They are already in contact with “several interested parties,” added the statement.

As well as its branch network which supplies car parts and motoring services, LSUK operates subsidiaries MI Diesel Products, Protech Automotive (UK) and Yeovil Rewind.