Wed, 08 Jan 2025 | ADMINISTRATION
EDAM Group which provides drivers with credit hire and post-accident repair services has gone into administration.
The group has appointed Ryan Grant and Rick Harrison of Interpath as Joint Administrators to Easi-Drive Ltd, Credit Repair Ltd and EDAM Group Ltd (the group).
It is understood that EDAM Group, which provides drivers with credit hire and post-accident repair services through intermediaries, such as insurers, has been suffering from challenging trading conditions.
In its last annual filing to Companies House for the year ending 31 March 2023 the company reported a turnover of £26.5 million, down from £36.6 million the previous year. Its loss widened to £2.8 million from £2.4 million.
The directors blamed factors such as the impact of the Ukraine war on the global supply chain and speed of repairs.
It employed 195 staff across its head office in Manchester, support office in Sunderland and depots in Falkirk, Bristol, Hitchin, and Horsham.
On appointment of the Joint Administrators 101 employees were made redundant as they began a process to orderly wind-down the group's operations.
The remaining staff have been retained in the short term to assist the Joint Administrators in fulfilling their duties.
The Joint Administrators said the EDAM board had sought to explore options including a sale, investment, refinance and restructuring.
Customers with ongoing repair services or with credit hire vehicles remain unaffected at this time and are bound by existing terms and conditions.
The business has stopped taking on new credit hire and repair service engagements.
Grant said: "Like many players in the credit hire market, EDAM Group has faced challenging macroeconomic trading conditions following structural changes to road traffic volumes encountered since the pandemic, as well as the associated supply chain impact on the UK garage network. We have commenced an orderly wind down of EDAM's operations, while also supporting those employees impacted by redundancy, providing them with resources and guidance to file the appropriate applications to the Redundancy Payments Office."
The administration does not include Garvins Law, the credit hire litigation specialist, which remains independent and continues to trade as normal.
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