Fri, 20 Oct 2023 | ADMINISTRATION
Central Cab Care, a taxi credit hire provider to the insurance industry, has fallen into administration. Interpath Advisory’s Chris Pole and Ryan Grant have been appointed as joint administrators to the company and are now seeking a buyer.
The company, which is based in Coleshill, Birmingham, provides services across the UK and is an established, long-standing first tier ABI provider of taxi credit hire for the insurance claims industry. Prior to its administration, the company employed 45 staff, 12 of whom were made redundant upon the appointment of administrators.
Despite being a well-established business nationwide, Central Cab Care has been impacted by an array of trading difficulties, most notably recent legislative changes which have exacerbated challenges in recovering historic book debts that the business had accumulated.
According to the company’s joint administrators, this has placed “unsurmountable pressure on the company’s liquidity” and ultimately led to its directors placing it into administration. The joint administrators intend to continue trading the business in the short-term with the aim of stabilising its financial position and exploring opportunities for a sale.
Joint administrator Chris Pole commented: “We are actively seeking buyers for the business and its assets, and would encourage any interested parties to make contact with us at the earliest opportunity.”
In Central Cab Care’s most recent accounts at Companies House, for the year ending August 31 2022, its fixed assets were valued at slightly over £1 million, with current assets standing at close to £7 million. The company’s creditor debts at the time left it with net assets totalling £875,871.
Distressed acquisitions made during periods of economic pressure present both huge opportunities and considerable risks, meaning that rigorous due diligence is absolutely paramount, even within a tight timeframe. Find out more about conducting acquisitions during economic downturns in these in-depth insights:
Finding M&A value in an economic downturn
Conducting due diligence in a downturn - Unlocking value and avoiding hidden risks
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