Dealers are being urged to seek advice the moment they see signs of impending financial trouble to avoid the fate of DC Cook and HMG Holdings which have gone into receivership this year.
According to Andrew Dick, partner at corporate rescue and recovery firm Begbies Traynor, dealers who seek early advice and have contingency plans in place are those more likely to survive.
“A proactive approach is required,” he said. “Many of the problems resulted from a reactive attitude at management level and waiting too long to take remedial action.
“Dealers can seek free advice from most corporate rescue and recovery businesses, giving them the opportunity to consult early and avoid possible financial disasters.”