Oct 06, 2008 17:29:02
Quote: "BBC News posted:
Car parts firm's staff lose jobs
About 80 people have lost their jobs in the West Midlands region after a car parts company closed suddenly.
LSUK, formerly known as Lucas, appeared to have been rescued when it was bought by Euro Car Parts last week.
But staff turned up for work on Monday to find themselves locked out and a notice on the door telling them the company had stopped trading.
It had branches in Birmingham, Tipton, Hereford, Gloucester, Shrewsbury, Warwick and Wolverhampton.
The administrators Tenon Recovery said 79 staff were affected in the West Midlands region and 680 workers across the UK.
When Euro Car Parts bought LSUK from holding company Pinco 1555 Ltd, chairman Sukhpal Singh said he did not intend cutting jobs.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
An ECP statement said: "Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Sunil Limbachia, who managed the company's branch in Aston, Birmingham, said: "I can't believe we can be sold to somebody one week and seven days later they close the doors and we're all basically out of work.""
Car parts firm's staff lose jobs
About 80 people have lost their jobs in the West Midlands region after a car parts company closed suddenly.
LSUK, formerly known as Lucas, appeared to have been rescued when it was bought by Euro Car Parts last week.
But staff turned up for work on Monday to find themselves locked out and a notice on the door telling them the company had stopped trading.
It had branches in Birmingham, Tipton, Hereford, Gloucester, Shrewsbury, Warwick and Wolverhampton.
The administrators Tenon Recovery said 79 staff were affected in the West Midlands region and 680 workers across the UK.
When Euro Car Parts bought LSUK from holding company Pinco 1555 Ltd, chairman Sukhpal Singh said he did not intend cutting jobs.
The notice, which has been posted at its 53 branches nationwide, said: "It is with great regret and due to unforeseen and exceptional circumstances beyond our control that with effect from Monday 6 October this branch will cease to trade."
An ECP statement said: "Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with immediate effect."
Sunil Limbachia, who managed the company's branch in Aston, Birmingham, said: "I can't believe we can be sold to somebody one week and seven days later they close the doors and we're all basically out of work.""
They've been close to the end for a long time, but some DPO just kept patching over the charred bits of wiring with electrical tape.
http://news.bbc.co.uk/1/hi/england/west_midlands/7655583.stm