Classic car sales have been on a tear for the past decade but that hasn't insulated one of the biggest names in the business from becoming insolvent.
British firm JD Classics, a dealer of classic cars but also an expert restorer and organizer of classic racing events, entered administration on Friday, a process similar to bankruptcy protection here in the United States.
Richard Beard, Mark Firmin and Richard Fleming of Alvarez & Marsal were appointed as joint administrators of JD Classics Holdings Limited, JD Classics Limited and Daytona Bidco Limited, which together have an inventory of over 100 classic cars.
The administrators are seeking a buyer though may have to end up selling assets to recover funds for lenders, key among which is thought to be Lloyds Bank.
It isn't clear where JD Classics ran into trouble but in a sale document seen by Sky News in August, Alvarez & Marsal mentioned the discovery of “financial irregularities” and an ongoing “investigation into these matters.”
This is the same company that in June hired former Lotus CEO Jean-Marc Gales to replace founder Derek Hood. Hood, who is no longer with the company he founded in 1987, was sued by a customer earlier this year and in April received a judgement of “deliberate and dishonest conduct” in his dealings with the customer, according to Sky News.
Stay tuned.
