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Multibrand dealer group collapses

Nidd Vale Group, one of the first to truly embrace multi-franchising with its five brand dealership in Harrogate, has collapsed after financial difficulties.

The £43m turnover dealer has Vauxhall, Mazda and Seat franchises at Harrogate, another Vauxhall outlet at Wetherby, and had previously also represented Saab, Peugeot and Mitsubishi.

Administrators from Leonard Curtis have been sent in by Santander.

Vauxhall said it is still trading while negotiations progress with a potential buyer.

It comes three weeks after administrators firm Leonard Curtis was called in to Vauxhall dealer Monorep, which had dealerships in Hayes and Southall, Greater London. AM understands these have closed.

Nidd Vale had been planning to relocate to another site in Knaresborough and allow its Harrogate property to be redeveloped by a supermarket.

AM's learned from dealer sources earlier this week that a sale or closure was expected today, however calls to Nidd Vale's managing director Neil Crossley, a former general manager at Marshall Motor Group, have not been returned.

Nidd Vale has been highly geared since 2007.

It went through two seperate management buyouts in the last decade, first by Colin Hainstock in 2003, then by Paul Stokes in 2007, both backed by Bank of Scotland.

Richard Jackson, who had chaired the group prior to Hainstock's MBO which left him heading its Mercedes-Benz operation in North Yorkshire, which he then sold to Rybrook, had remained a shareholder.

Nidd Vale Group franchise and financial overview. Source: AMi

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Comments

  • sgcb - 05/12/2012 14:36

    arnold clarke has taken moorland motors

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  • iceage - 05/12/2012 15:47

    Vauxhall Dealers now falling like flies.... And Vauxhall says there is no problem with Dealer profitability; Der someone can't count!!

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    • B Wilson - 06/12/2012 15:29

      @iceage - what a pathetic comment. It's bad management at retailer level not at Vauxhall

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    • Iceage - 06/12/2012 15:34

      @B Wilson - So is that why General Motors went skint?

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    • b wilson - 06/12/2012 15:37

      @Iceage - again with wrong comments GM America NOT Europe

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    • iceage - 06/12/2012 16:50

      @b wilson - As you sound so well informed please tell us all why GM Europe will lose over a Billion in Europe this year?.... An example of a well run business?

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  • Archie - 05/12/2012 15:55

    No doubt forced pre reg's played a part!

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    • B Wilson - 06/12/2012 15:33

      @Archie - yeah blame the manufacturer. Who runs the business ? Idiotic statement

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  • c u jimmy - 06/12/2012 10:14

    ARCHIE YOU ARE SPOT ON BUT SOME ARE GETTING FAR BETTER TERMS JUST LOOK AT WHAT CERTAIN GROUPS CAN OFFER A PRE-REG FOR COMPARED TO THE SMALLER LOYAL FAMILY BUISNESS

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    • BWilson - 06/12/2012 15:36

      @c u jimmy - why do so many people talk about issues they know nothing about. It's a franchise stupid . does different McDonald's sites get better deals. No they don't so your statement is rediculous.

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    • sgcb - 06/12/2012 16:10

      @BWilson -check out whitmores of edenbridge on www.companycheck.co.uk.telephone numbers baby, pumped in by MH

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    • neptune - 06/12/2012 21:24

      It is not a franchise but a sales and service agreement with the manufacturer. Wake up and smell the coffee or don't comment with a lack of knowledge. Deals are constantly done with large plc/groups which distort the market and disadvantage smaller dealers

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    • c u jimmy - 07/12/2012 09:09

      @BWilson - actually it,s something i know about having been a dealer for 40 years example look at nidd/vales best price for Antara and compare it with a/clarks now tell me it,s a level playing field.

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    • TonyHowarth - 07/12/2012 23:13

      @BWilson - I can't talk for McDonalds franchises, but if you think all car dealers get the same deal then you are mistaken. Are you familiar with the term 'buying power'?

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    • Rob Chisholm, Applewood Vehicle Finance Ltd - 12/12/2012 13:03

      @BWilson - Do keep up at the back ... the deals each dealer gets these days depends entirely on how many they pit their hands up for and shift. That's all thanks to the 'Supply of New Cars Order 2000'. I suggest you check it out. It would be nice to think that the manufacturers and other interested parties actually abided by it in full. They don't, and it's about time someone took a good long look at the situaton.

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  • Millionaire - 06/12/2012 11:09

    When will Vauxhall learn, they've lost so many brilliant dealers in the past few years in their vanity to become No 1 at any cost. About time GM US looked at their UK senior management.

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    • B Wilson - 06/12/2012 15:26

      @Millionaire - your so wrong get your facts right its bad management that fails a business not the manufacturer. Why are the majority of Vauxhall retailers so profitable then. Puts your immature comments to question. Comment on what you know not what you assume.

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    • Millionaire - 06/12/2012 15:41

      @B Wilson - Touched a nerve have we? Do you work for Vauxhall by any chance? Funny that the whole world appears to be out of step with you. Merry Christmas!

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    • BN - 06/12/2012 17:26

      @B Wilson - R.I.P Monorep, Stevens Vauxhall, Approach, PNG, & now Nidd Vale, some of these have been trading over 40 years and now they have all recently gone, surely it all can't be down to bad management.

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    • q - 06/12/2012 20:08

      @BN - plus Sewards,Wards,Hargreaves,Bicknells

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    • q - 09/12/2012 08:49

      @B Wilson - it is far too easy, simplistic and frankly naive to lay the blame solely at the retailer management's door! There are always a number of other factors involved in these types of cases. The market plays a big part - lets not forget quite how tough it is in this very crowded environment.

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    • q - 11/12/2012 19:18

      @Millionaire - or perhaps a new "franchise" holder??

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  • Archie - 06/12/2012 14:56

    Banks not extending facilities,manu's keep flooding the compounds with stock packs,"if you don't participate it won't look good at your up and coming review....recipe for disaster!

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  • Archie - 06/12/2012 22:06

    At least 30% of some makes registrations are either forced or encouraged through bully boy tactics.
    Manufacturers pay lip service to their business development teams,not the slightest interest in a dealers cash flow as their number one priority is flooding the market with surplus stock that they have ordered from the factory.

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  • Monkey - 09/12/2012 22:50

    From what I can gather this is nothing to do with what franchises were held by Nidd Vale.
    A substantial unpaid 'bill' got serious - Intention to appoint administrators was filed to give a few days protection in order to sell the business - Santander got spooked by this and sent in Leonard Curtis to protect their interests. So ended a fantastic 90 year old brand and the careers of some very good people.

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  • sgcb - 11/12/2012 16:41

    Best way out of a dealer agreement!

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  • Andrew Lewis I.F.C.I, - 14/12/2012 19:16

    As an ex senior employee, I am saddened to hear the news, but can only express my surprise that it lasted as long as it did.

    The good news is that I am sure Mr Forrester can sort it out. Good luck to him.

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