News
31 Oct 2012 03:41pm

PwC steers Black Cab administration

PwC has been confirmed as administrator of Manganese Bronze, manufacturer and retailer of London black cabs since 1948, after they failed to gain new funding

PwC said the administration was due to a "combination of poor UK sales, supply chain issues, and high warranty costs."

The Coventry-based company, which has been losing money for four years, suffered a major setback this month when a steering box fault led to the recall of over 400 cabs and the suspension of sales.

This followed the discovery of accounting errors earlier this year.

The move in place the company in administration has put 277 jobs under threat across dealerships in London, Manchester, Leeds, Edinburgh, Glasgow and Coventry.

However, Matthew Hammond, partner at PwC said there had been an “encouraging” list of interested parties and encouraged any further interested parties to get in touch "as a matter of urgency".

"We are reviewing the existing financial position to develop a range of options to rescue the business or alternatively dispose of it to an investor that can continue the business to a secure future for the iconic London black cab,” he said.

The company was reportedly in talks with its Chinese joint venture partner Geely, which owns a 20% stake in the business, to secure a £15m loan before the announcement.

 

Raymond Doherty

 

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