Thu, 02 May 2024 | BUSINESS SALE
A vehicle recovery and maintenance business has been acquired out of administration in a pre-pack deal. Lanes Recovery Ltd (Lanes) fell into administration on April 16, with joint administrators Andrew Watling and Carl Jackson from Quantuma shortly after completing a sale of the business and assets to a newly created company, Lanes Garage Recovery Services Ltd.
Lanes provides vehicle recovery, maintenance and storage services, operating from four sites in South and Mid Wales, Gloucestershire, Herefordshire and Worcestershire. The company was founded in 2018, with roots going back to a family firm established in 1951.
The company reported turnover of £4.6 million in 2023-24 but had endured a challenging trading period during the COVID-19 pandemic, which left it with significant tax arrears. The company subsequently faced a winding-up petition.
After approaching its secured lender for support, the company was referred to Quantuma for insolvency advice. Ahead of the imminent advertisement and hearing of the winding-up petition, and with the company unable to source funding, Quantuma undertook an accelerated sales and marketing campaign.
The campaign resulted in several expressions of interest from potential outside buyers, but ultimately no offers were put forward. As a result, the proposed administrators concluded a sale to the newly created company, which is run by relatives of the director.
The deal, considered the only viable route to save the business and maximise creditor returns, has secured the company’s future and protected all 59 jobs, which were transferred to the buyer under TUPE.
Joint administrator and Quantuma Managing Director Andrew Watling said: "We are pleased to have achieved such a positive outcome for Lanes Recovery, ultimately preserving all jobs and with no disruption to ongoing operations. This sale secures the continued trading operation of the business in its four locations.”
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