Begbies kick-starts Motor Books
The Stoke office of insolvency firm Begbies Traynor has arranged a company voluntary arrangement (CVA) for an independent bookstore.
London-based Motor Books, which claims to be the oldest motoring bookseller in the world, said "a number of decisions and issues" had led to it reaching an insolvent position.
Bob Young and Steve Currie, partners at corporate recovery specialists Begbies Traynor’s Stoke office, arranged a Company Voluntary Arrangement (CVA), allowing the company to continue trading.
Young said: "Expanding into stores in Bournemouth, Swindon and Oxford had not proven successful over the years – the business was left with a bad debt of £17,000 on the Oxford premises - but in 2010 the company suffered a further serious blow when its principal supplier of motoring titles, Menoshire, suddenly ceased trading.
"Motor Books had a long trading history with Menoshire and preferential trading terms. It was not able to fill this gap quickly and on the same commercial terms with multiple book wholesalers and consequently turnover slumped from £798,235 in 2009 to £644,942 in 2010."
Under the CVA, the proposals provide for all creditors to be paid in full over a five-year period.
