However, Denkale disputes Chevrolet’s claims. Managing director Mahinder Gill told AM that the group, which represented Chevrolet in Southampton, Reading and Slough, notified the carmaker of its cashflow crisis several weeks before termination.
At the end of March, Gill put his Fiat dealership in West London into administration, which prompted his financiers Bank of Scotland to pull its cross company guarantee.
Chevrolet was informed of this in early April, said Gill.
“With very little working capital, we were unable to pay Chevrolet, GMAC and other creditors monies due to them in April, stretching our relationship to breaking point with our suppliers,” he added.
After unsuccessfully attempting to secure other banking facilities, Gill was forced to appoint Baker Tilly as administrator last Friday, at the same time as Chevrolet issued its termination.
He said: “It has left me with a massive personal financial loss and the loss of 42 good employees who have worked hard over the last six years in the business.”
A Chevrolet spokesman said that Denkale’s signage was removed and retrieval began of cars funded by GMAC, General Motors’ finance division, until prevented from doing so by Denkale.
The termination related to alleged “financial irregularities” involving marketing funding from Chevrolet.
Gill said: “I have upheld a very respectable business and this statement will cast a shadow on me and my staff’s integrity.”
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