A business which provides servicing and vehicle hire has collapsed into liquidation placing the blame entirely on the coronavirus outbreak.
SWM Motors in Brandon called in McTear Williams & Wood as liquidators on 19 May making eight people and two directors redundant.
Appointed liquidator Hayley Watson said: “The directors state that the entire reason for the closure of the business was the Covid-19 outbreak which resulted in a 6 month extension for MOT’s for vehicles with a resultant loss of 40% or revenue making the business untenable.”
According to latest accounts published for the company, SWM Motors owed £129,723 to creditors payable over the following 12 months. Of this £70,731 was to trade creditors, in excess of £27,000 was on hire purchase contracts and £15,515 was on bank loans and overdrafts. Some of this will be paid off by assets the firm owns – however these assets fall short by a deficit of £34,851.
Assets available to the liquidators to balance the books include money owed by debtors of £77,260, in excess of £14,000 in stocks and £3,277 in cash in the bank.
Ms Watson said that the preferential creditors – those which would be paid as a priority – were employees for arrears of wages and holiday pay.
20 May 2020