Redundancies expected following car sales collapse

ADMINISTRATION: Holiways Ford dealership in Newton Aycliffe ADMINISTRATION: Holiways Ford dealership in Newton Aycliffe

HOLIWAYS Ford, the family-run business that became one of the region’s best-known car dealerships, has gone into administration.

Many of the firm’s 81 staff will be made redundant.

It also leaves a part of Darlington and County Durham without a dealership selling and servicing vehicles from the country’s biggest manufacturer.

Car sales have collapsed in the wake of the recession and, despite efforts to shore up the business by selling sites in Durham and Hartlepool , Holiways was unable to carry on.

The new and used car retailer, which also ran a servicing and repairs operation from its two sites in Newton Aycliffe and Bishop Auckland , cut thousands of pounds off the price of its cars in recent weeks.

Only days before going into administration, it was offering 11-registration Focus Zetec models for £10,999 – a saving against new of £6,700 and nearly £2,000 less than the guideline trade retail price.

But administrators said that despite selling its Durham and Hartlepool dealerships in recent weeks, the company had incurred significant losses.

Administrator KPMG is expected to sell the Ford dealership’s property and other assets as it winds down the business.

Mark Firmin and Howard Smith, of KPMG, have been appointed joint administrators by FCE Bank.

Although it has been unable to confirm how many of the firm’s 81 jobs are at risk, it said a “high proportion”

will be made redundant in the coming days, with the rest continuing to assist the administrators in the short term.

Mr Firmin, who is head of UK regional restructuring at KPMG, said: “It is unsurprising that during a recession, a relatively rural car retailer has struggled. Despite a restructure, which saw Holiways sell two dealerships in recent weeks, the significant losses incurred by the business through the summer means it simply could not continue to trade.”

Customers who had placed deposits for cars had their money returned earlier this week.

Comments(25)

GeordieB says...
5:13pm Tue 7 Aug 12

This is the last thing the area needs. Another 81 jobs under threat.....

NO EINSTEIN says...
7:50pm Tue 7 Aug 12

I'm sorry for all these folks that are losing there jobs, but when a main dealer does an interim service for £145.00 when all they do is top up the oil and brake fluid (if it needs it) then does a 40 point check, what do they expect when people go elsewhere.
I just had a full service in Northallerton, with the oil filter, air filter, and fuel filer changing, plus the spark plugs and oil, and it was only £90.

NO EINSTEIN says...
7:50pm Tue 7 Aug 12

I'm sorry for all these folks that are losing there jobs, but when a main dealer does an interim service for £145.00 when all they do is top up the oil and brake fluid (if it needs it) then does a 40 point check, what do they expect when people go elsewhere.
I just had a full service in Northallerton, with the oil filter, air filter, and fuel filer changing, plus the spark plugs and oil, and it was only £90.

pilchrat says...
8:03pm Tue 7 Aug 12

Sorry to hear this. They only opened at that site in Bishop a couple of years ago. I hope everyone working there can move onto something else quickly :(

Dodger27 says...
1:02am Wed 8 Aug 12

No Einstein, were genuine ford parts used for your service? I suspect not so not a fair comparison. Nice u show compassion for the people losing their jobs, great comment well done.

stevegg says...
9:06am Wed 8 Aug 12

If a main car brand franchise is struggling like this what does it say for similar outlets, the car industry as a whole and the state of the economy? For those who can afford it, it must be a fantastic time to buy a new car!

_Ice_Q says...
9:28am Wed 8 Aug 12

No Enstein, obviously you don't have a manufacturers warranty on your vehicle. Prices like those mean non geniune parts were used thus warranty is void. You are also using parts that in the event of failure you will find very hard to get warrantable repairs done by the servicing garage or by the company manufacturing the service items. This is why you pay a bit extra for servicing at a main dealer - Peace of mind that your vehicle is in good hands is worth a little extra.

A.Smith 71 says...
9:49am Wed 8 Aug 12

I really feel for the people who are being made redundant as the area has nothing for them to drop into.

The costs that people are talking about are always a subject of debate even when everything was booming and people had plastic money to waste - dealer servicing is and will always be the most expensive route. I always ensure that genuine parts are put on my cars when being serviced and you can still have a full service a lot cheaper than at a dealership.

jewitt says...
10:51am Wed 8 Aug 12

Does George Osborne fully appreciate the parlous state of the NE economy? Discuss

flowersinthegarden says...
10:59am Wed 8 Aug 12

Feel really sorry for everyone at Holiways. My car came from there and returned regularly for MoTs, services etc. The service was always fantastic & the reception (and some of the service) staff knew who I was by sight-real family feel-nothing was ever too much trouble. I'm sad to see them go.

holmesc1 says...
12:33pm Wed 8 Aug 12

Sad news for staff who were as folk say above freindly especially at the bishop Auckland branch. So much more helpful than those at the darlington. However the cost of serviceing was expensive. There was the middleton road garage in shildon who was ran by ex peugeot dealership mechanics who did a good job of repairing and serviceing my car for under £100, big saving from holliways and re-manufactured parts are ok especially if you car is not under warrantry. Fords as well as vauxhalls have always been good for non original parts and when i bought my mondeo st a 3.5 years old i saw no need to get it serviced at holliways as it was under no warantry. I guess Bishop and aycliffe just aint got folk buying new cars any more for the need of a main dealer

PJ Chingford says...
12:57pm Wed 8 Aug 12

Very sad news, been there and got the T shirt, now back in work. Just bought 2 cars from them last week!, good people to deal with , easy going and no undue sales pressure, would have dealt with them again. Good luck to all the staff.

maxmum says...
2:28pm Wed 8 Aug 12

I am surprised it didn't happen sooner because of the attitude of the staff at Bishop Auckland and Newton Aycliffe.

himb11 says...
2:43pm Wed 8 Aug 12

Thanks for your support maxmum

Homshaw1 says...
4:18pm Wed 8 Aug 12

Sad when people lose their jobs. Hope they all find new jobs quickly.

Service staff must be able to find work. Cars still need servicing. Can see how sales staff will have a problem

A.Smith 71 says...
4:48pm Wed 8 Aug 12

himb11 wrote:
Thanks for your support maxmum
But in this day and age attitude goes a long way when someone is looking at spending £1,000's on a car, bad attitude of staff only puts people recommending them as a great service!

Good customer service skills are free if you use common sense, who knows how many businesses have failed over the years due to poor staff attitude!?

Still sad to see another local business going to the wall and the loss of those jobs in the current climate.

mark.wilkinson says...
5:47pm Wed 8 Aug 12

_Ice_Q wrote:
No Enstein, obviously you don't have a manufacturers warranty on your vehicle. Prices like those mean non geniune parts were used thus warranty is void. You are also using parts that in the event of failure you will find very hard to get warrantable repairs done by the servicing garage or by the company manufacturing the service items. This is why you pay a bit extra for servicing at a main dealer - Peace of mind that your vehicle is in good hands is worth a little extra.
Manufacturers warranties are not worth the paper they're written on. Anyone who buys into this expensive con when buying a car is a very naive muppet indeed.

Parts guy says...
6:20pm Wed 8 Aug 12

_Ice_Q wrote:
No Enstein, obviously you don't have a manufacturers warranty on your vehicle. Prices like those mean non geniune parts were used thus warranty is void. You are also using parts that in the event of failure you will find very hard to get warrantable repairs done by the servicing garage or by the company manufacturing the service items. This is why you pay a bit extra for servicing at a main dealer - Peace of mind that your vehicle is in good hands is worth a little extra.
_Ice_Q Due to block exemption laws as long as the Garage doing the repairs/service is V.A.T registered and the parts used are of equal specification to dealer supplied parts then your warranty will not be effected...

Middleton road mentioned here and many more local garages use original equipment spec parts and all come with a 12 month warranty for parts and labour exactly the same as dealer parts....in fact many aftermarket parts are made in the same factories as the dealer parts and sold in after market supplier boxes....mann and hummell and ufi are both main dealer filtration suppliers and aftermarket suppliers!!!

You pay extra for the labour rate more than the parts....take a look at the showroom that the dealer has to maintain and keep upto manufacturer standards and all the non profit making staff that have to be carried this is why the price is higher....

Ironing board says...
9:58pm Wed 8 Aug 12

With regard to the staff at Holiways I've always found them great .However when you hear the management took themselves off to watch the Olympics with Hotels on the firm,buying GT40 cars and generally sucking the life out of any profit made by the staff What do you expect !,,,

A.Smith 71 says...
8:44am Thu 9 Aug 12

Ironing board wrote:
With regard to the staff at Holiways I've always found them great .However when you hear the management took themselves off to watch the Olympics with Hotels on the firm,buying GT40 cars and generally sucking the life out of any profit made by the staff What do you expect !,,,
And was all this paid for through the business and can you prove it?

Otherwise this is speculation and has no weight because surely the management can do with their own money whatever they want?

If they have GT40's paid for through the business then they are assets so will be sold separate or as a job lot with the business by the administrators.

jewitt says...
3:04pm Thu 9 Aug 12

sad also to see stephenson clark - the world's oldest newcastle shipping company - go into liquidation

http://uk.finance.ya
hoo.com/news/global-
slump-sinks-britains
-oldest-131203092.ht
ml

spragger says...
6:42pm Thu 9 Aug 12

A firm fails, an opportunity is created for someone else, this is the nature of business

With DCC however crap it becomes it will still pick your pocket & give you a naff service

Parts guy says...
6:57pm Thu 9 Aug 12

Something tells me that when more now ex-employees see this thread a few more Ironing Board stories will be coming out......

NO EINSTEIN says...
7:52pm Thu 9 Aug 12

_Ice_Q wrote:
No Enstein, obviously you don't have a manufacturers warranty on your vehicle. Prices like those mean non geniune parts were used thus warranty is void. You are also using parts that in the event of failure you will find very hard to get warrantable repairs done by the servicing garage or by the company manufacturing the service items. This is why you pay a bit extra for servicing at a main dealer - Peace of mind that your vehicle is in good hands is worth a little extra.
_Ice_Q Due to block exemption laws as long as the Garage doing the repairs/service is V.A.T registered and the parts used are of equal specification to dealer supplied parts then your warranty will not be effected...

In your face _ICE_ Q, SORRY

spanky19592012 says...
1:32pm Sun 12 Aug 12

it was only a matter of time they closed as the current marketplace did not justify
having two dealerships within a short distance did not work as you were affecting each other branch.
i used to work at elliotts and when they closed the md of holiways was wanting to jump right into the area to get the rich pickings of a successfull long established family owned dealership successfull dealership

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