Grease Junkie Garage Limited was placed into liquidation at meetings of its members and creditors on 5th August 2016. Michal Fortune and Carl Faulds were appointed as joint liquidators of the company.
Creditors can read the first report here
The company was incorporated in October 2009 as a web based retailer of products featured in the TV show Wheeler Dealers.
In 2012 the company acquired the business of a motor garage in Bracknell, Berkshire, which included and MOT testing facility. As a result of the sale the MOT tester resigned which left the company in difficulty. As well as this it transpired that there were sums due to the employees and creditors which had not previously been disclosed. The company was obliged to settle the claims and as such significant unbudgeted costs were incurred.
Following the sale the staff were unable to adapt to the different working methods, resulting in four different managers being appointed over time to try to manage the garage. The premises itself was also in a very poor condition. It was envisaged that the image of the garage would be improved to make it a bench mark for the industry. In order to accomplish this a major refurbishment was undertaken resulting in additional workspace to allow more vehicles to be tested at any one time and to generally increase the profile of the garage. It is estimated that the refurbishments cost in excess of £450,000.
Despite some improvements being made by the introduction of a new director, who resolved a number of the ongoing staff issues , the company was unable to retain an MOT tester and as such had its MOT licence removed. This resulted in the loss of MOT business and also the ancillary repair work that came with it and the company experienced severe cash-flow difficulties.
A new manager was found who implemented significant changes and improved the position of the garage business, but was unable to prevent the arrears to HMRC from increasing. In addition the energy provider made a claim for supply which was disputed by the company. The matter was referred to the regulator, although this was not able to prevent the supplier from issuing a statutory demand and a subsequent petition to wind-up the company. The directors and shareholders wished for the company to enter into voluntary liquidation in order that any goodwill would be preserved to allow a sale of the business to be achieved and as such meetings were convened to place the company into voluntary liquidation.