The cash flow problems that have been plaguing Eurotec Automotive for some time have caught up with the West Yorkshire based parts importer and wholesaler, writes Ian Wagstaff. A meeting is scheduled to take place on March 5 of Members and Creditors with a view to placing the company into Creditors’ Voluntary Liquidation. Eurotec’s 35 employees have all been made redundant.
Mazars, a Leeds office of accountants and business advisors has been appointed to assist in convening the meeting. Commenting on the problems of operating with cash flow problems in an increasingly competitive market, Robert Adamson, a senior manager in the firm states “Unfortunately, suppliers finally withdrew their support, so it was not possible to trade the business while we looked for a buyer.”
Mazars is in the process of establishing the full extent of Eurotec’s liabilities, details of which are to be made in a report presented at the creditors’ meeting.
Eurotec Automotive was formed in 1962. It sold under the Balco trading name but was also a distributor of FIAAM, Denso and Beru products. In 1998 it was purchased from Massilia Holdings by a management buy-out team, financed by NMB Heller Business Finance and led by Ron Branton. Like so many, it was to suffer from being a supplier to the ill-fated Finelist and subsequently Bulldog Express operations. Its turnover was in the region of £6 million.
It should be noted that Eurotec had nothing to do with the garage equipment brand that was also marketed under the Balco name.
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