Valuation & Auction Sale – Simonstone (Bristol) Ltd – In Administration

Asset Class: Property (Leasehold Interest) | Vehicles – Commercial & Private  | Garage Equipment & Tools | Showroom displays | Office furniture & Equipment | Parts Stock

Acting on behalf of : Andrew Beckingham, Joint Administrator – Leonard Curtis Business Rescue & Recovery

 


The Brief

PACT were instructed to assist the Administrators of Simonstone (Bristol) Ltd, a main Fiat & Alfa dealership in Brislington, Bristol in January 2020.  The assets comprised a large leasehold showroom with workshops, car display areas, plant and equipment stock and company vehicles.  All vehicle stock, both new and second hand, having been removed from site making the sale of the business unlikely.

Our brief was to maximise the value of the assets on site, minimising rent and occupation costs while clearing the building

The challenge:

•  Managing landlord concerns as the administrator pursued last ditch efforts to find a buyer for the business as a whole while at the same time preparing for a short notice asset sale and full site clearance within a 6 week time frame

•  A small number of part repaired, non-roadworthy customer vehicles had been left on site and required recovery by their owners. This presented logistical challenges for PACT and for the owners requiring sympathetic handling and imaginative solutions

•  Finding buyers for the stock while the Administrator and Fiat settled ownership disputes and concluding sale during Covid19 lockdown restrictions

 

The Solution / Actions taken

•  An initial detailed inventory and valuation of all the assets & stock was undertaken to allow the administrator to assess any offers received for the business

•  Facilitating viewings with interested parties for the business, working collaboratively with the Landlord.  By working closely with all stakeholders we were able to explore the possibility of a sale of the site as a fully equipped entity while continuing to prepare for an auction and prompt exit from the site should no purchaser be sought within the restricted time period

•  Once it became apparent that a sale, as a whole, was unlikely we were quickly able to action an online auction of the assets subject to a 10 day marketing campaign and rapid clearance

•  Marketing was targeted at similar businesses nationwide and locally for the more generic items of equipment.

•  A view day was organised and was well attended with over 700 parties showing interest (online) in the sale and securing online bids in excess of valuation

•  To ensure occupation costs could be kept to a minimum while negotiations with Fiat in respect of the parts stock continued post asset clearance, the stock was uplifted and remove from site to secure storage for sale at a later date.  Prompt action ensured stock was secured in time for government enforced nationwide lockdown

 

The Outcome

By acting immediately we were able to pursue the twin track approach of seeking a buyer for the site as a going concern while preparing for an auction if necessary. Our collaborative approach kept the landlord and his advisors on side allowing viewings to take place while we were preparing for the sale.  Our client could be confident that all steps had been taken to maximise the realisations from the equipment while minimising the time and cost of remaining on site.

•  Owners of vehicles that remained on site were dealt with in a considerate manner which recognised their difficulties. This approach minimised the number of complaints received.

•  The cleared property was handed back to the landlord at the end of February 2020.

By actively engaging with all stakeholders we achieved the best result for our client while largely meeting the expectations of the landlord,

 


 

What the client said ..

 

 

 

 


Chris Price, RICS registered property valuer and commercial asset auctioneer, has over 30 years experience in the corporate recovery and auction sector.
His unique, combined property & chattel auction expertise ensures your project
is in capable hands and guaranteed to achieve the best outcomes

Call Chris today to discuss your requirements : 0117 456 8775

e: chris.price@pactproperty.co.uk

t: 0117 456 8775 | m: 07979 541215