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LANDMARK SCOTTISH DEALERSHIP GOES BUST

The site-sharing Ducati Glasgow and Triumph Glasgow operation has been declared insolvent and is now subject to disposal as a “distressed opportunity”.

All the companies behind this edifice — Rogers, Rees & Robins Limited, Rogers, Rees & Robins (Properties) Limited, R3 Red Limited and R3 Black Limited — formally entered administration on 27 November. 

Licensed insolvency practitioners Julie Tait and Stuart Preston of accountancy firm Grant Thornton UK were appointed as joint administrators to manage the failed business. And they are now orchestrating an attempt to sell it as a going concern.

According to Grant Thornton, the dealership turned over £8.9m in its previous fiscal year, including £4.3m in sales of new bikes across both brands and £2.8m from used machines, and was profitable at operating level. But the impact of Covid across its peak trading season in 2020, which included a three-month lockdown closure, depressed revenue to £5.5m in nine months of a current fiscal year to 31 October. 

This meant the business has been unable to generate sufficient cash to meet financial obligations to its secured creditor. That creditor, understood to be Clydesdale Bank, was therefore no longer willing to provide support.

Grant Thornton is now seeking a business and assets sale “on an accelerated basis” to ensure trading continuity for 15 employees and other stakeholders.

The administrators describe this as a “significant opportunity for a purchaser, most likely already operating within the automotive retail industry, to gain access to a loyal customer base, benefit from a wider geographical footprint and increased scale”. They also point out that, in terms of geographical reach, it is Ducati’s sole representative in Scotland.      

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