The company, who are a subsidiary of Coys, applied for a Creditors’ Voluntary Agreement (CVA) after filing for insolvency following a poor year’s trading and heavy expansion costs which left them with a £1.65m debt.
They are planning a creditors meeting on February 10. Around 30 vendors are thought to be out of pocket following the December sale and Coys are expected to offer them around a quarter of the money they are owed.
If the creditors do not accept the proposal the company will go into liquidation, with no guarantees of vendors getting any of their money back.
Coys have vowed to introduce a new accounting system that will “ringfence” clients’ money in future to protect it from company debt, a measure that at least one creditor argued should already have been in place.
The rest of Coys is not affected and the company have announced a 2004 sales calendar including a May date in Monaco.
Coys subsidiary ceases trading and sets up offer to vendors over debt
VENDORS of classic cars in a December sale held by Coys of Kensington (Sales) Limited face losing at least three quarters of their settlement as the firm ceased trading.
