Burton KIA loses inches in management buy out but safegaurds 26 jobs

Nottingham insurance broker, Towergate Risk Solutions has provided insurance advice to an MBO team which has safeguarded 26 jobs at a Burton on Trent car dealership.

Burton KIA has been purchased by its management team from the UK’s second largest international automotive distributor and retailer, Inchcape. 

BRD Retail Limited has purchased the dealership for a substantial sum following a decision by Inchcape to streamline its UK and European business. The management team of the new company will comprise co-directors Adam Redpath, David Deans and Ian Bullock, (pictured) who was previously the Inchcape franchise’s General Manager.

The company will continue to trade from its existing Moor Street premises, safeguarding the future of the business, and more importantly, providing employment security to over 26 employees.

The decision to go ahead with a management buy-out was agreed after Inchcape’s main board announced that various businesses were not going to form part of their core business going forward. Due to a strategic policy decision to rationalize Inchcape retail in both the UK and Europe, Kia, along with Honda, Mitsubishi, Mercedes Benz trucks and Volvo franchises were not going to be part of their future policy.

Commenting, Ian Bullock said, “The deal was sealed in less than three months thanks to massive support from Inchcape. The developments that Kia have made over the last few years have been amazing. The new models and vehicles that are coming through are highly finished and, supported by seven-year warranties, which mean that we see a very bright future.” He continued “I have been associated with the business for over 18 years, and more than four of the staff have been with the business longer than 25 years. I have total belief in the Kia franchise, and more importantly, we have created a family-type business for our very loyal, happy and friendly staff.”

The business now has a turnover of £10m per year and will continue to offer new and used Kias, non franchise vehicles, servicing and repairs.

Advisers on the deal were Carol Staton from Timms Solicitors and Tony Smith from The Smith Partnership who provided legal advice. David Meadows from Bourne & Co provided accountancy advice and Kim Howlett of Towergate Risk Solutions who provided insurance and risk management advice.

Kim Howlett added, “The effective transfer of insurance cover during a management buy-out is critical. It is important to carry out a full risk review ensure the cover reflects the risks of the new owners and their business operation.”