Ellen Group, the accident management firm that collapsed last month, has launched a legal battle against Toyota GB, which it blames for the failure.
Glyn Adams, who has resigned as chief executive and director of Ellen, is reported as saying he would “take Toyota GB to court” for failing to make progress on a multi-million pound deal to set up an accident management company.
“We spent £2m on a call centre for Toyota and they messed us about,” he said.
In a statement, the company said: “The anticipated future stream of car hire volume business has not been achieved.
In particular, the plan to work with Toyota has not come to fruition.”
However, Toyota dismissed the allegations, claiming it had “decided not to enter into a contract” with Ellen.
A spokesman said: “We have been talking to a number of accident management companies with a view to setting up a partnership. We decided not to go with Ellen group – there was no reason for them to think we were going to appoint them.”
Ellen Group's assets will be stripped and sold off apart from the bodyshop business in Oldham, which will be sold as a going concern.
Mr Adams, who owned 80% of Ellen, has since launched First-Call Insurance Services, which specialises in insurance products and services.
First-Call, which supplies work exclusively to bodyshop members of the Vehicle Builders and Repairers Association, offers an estimate conversion service on a 'no win, no fee' basis.