Major Mercedes dealership is latest victim of recession
Published 13/10/2010 | 05:00
ONE of the country's best-known Mercedes Benz dealerships, Alo Kavanagh Cars, has become the latest motor casualty of the recession after going into receivership.
The business, based in the Sandyford Industrial Estate in Dublin, specialised in new and quality used Mercedes as well as offering customers after-sales service.
But the recession has seen demand for top-end cars plummet and the business, which has 17 employees, is to be sold as a going concern.
Last night receiver Liam Dowdall at Smith and Williamson Freaney confirmed the process began on Monday and that he had already been made aware of interest from a number of franchises.
"We will be advertising the business for sale as a going concern. It is a prime location with very good showrooms," he said.
The most recent records at the Companies Office for the 27-year-old enterprise, dated October of last year, showed Alo Kavanagh Cars owed short-term creditors almost €1.8m and long-term creditors almost €1.9m.
The company suffered losses of almost €680,000 last year and over €800,000 in 2008 while the two directors, Mr Kavanagh and Derek Kelly, were paid salaries totalling €275,000 between them in 2009.
At the time the records were filed, the company had almost €500,000 worth of cars on its forecourts, considerably down on the same figure for 2008 when it was holding €1.2m worth of cars.
The directors' report noted that "the current economic environment is challenging" and that "the outlook over the next year presents significant challenges in terms of car sales volumes and pricing.
"Whilst the directors have instituted measures to preserve cash and secure additional finance, these circumstances create material uncertainties over future trading results and cash flows."