Euro Car Parts has confirmed it did not take due diligence after rushing to rescue LSUK from administration.
ECP revealed yesterday that after acquiring LSUK on September 29 it then put it back into administration nine days later.
A spokeswoman for ECP said: “Euro Car Parts wanted to turn LSUK around and it was considered a good move for ECP.
“No due diligence was taken as the initial acquisition was made very quickly to protect the 600 staff with rent and salaries being paid. “
ECP said the acquisition, which was overseen by Grant Thornton, was made due to the “presentation and word of the LSUK directors”.
“Not the business we thought it was”
ECP told AM: “It was neither feasible nor sensible to continue trading further and in the long run would have led to far greater problems for the company, its employees, suppliers and clients. Euro Car Parts realised that LSUK was not the business they thought it was.”
All of LSUK’s 53 branches were locked on Monday morning “to protect stock from suppliers” and 550 staff have been made redundant.
ECP said staff can contact a dedicated free helpline to find out how to retrieve their belongings.
Administrators for LSUK, Tenon Recovery, will now keep in contact with employees that have been made redundant.
ECP said: “Tenon will keep employees informed of further information as soon as it becomes available and will aim to keep the process as quick and transparent as possible in order to minimize distress for employees at this difficult time.”