Having failed to secure funding, UK taxi manufacturer Manganese Bronze has confirmed the appointment of Matthew Hammond, Tony Barrell, Ian Green and Mike Jervis – all from PricewaterhouseCoopers (PwC) – as joint administrators of Manganese Bronze Holdings plc, LTI Limited, MBH Services Limited and MBH Property Services Limited on 30 October 2012.
The Group has reported losses in the past four years, which it attributes to a combination of weak domestic sales, supply chain issues, and high warranty costs. Its fortunes were further damaged by the discovery of certain accounting errors in the first half of 2012 which increased the extent of the Group’s losses. This was then compounded by a recall of about 400 vehicles for a steering fault. Shares were suspended earlier in October.
“Without financial support to overcome these operational issues, the Group came to the conclusion that it could not continue to trade as a going concern. As a result the directors placed the Group into administration. LTI Limited is concentrating all its resources on fixing the steering fault,” a company statement reads.
Manganese Bronze says its administrators are now in talks with key stakeholders to secure funding to support the business while a sale is sought.
Matthew Hammond, joint administrator and PwC partner, explained that the administrators were focused on securing funding “in order to explore the options rapidly developed by the Management team and key suppliers to resolve the steering box recall. 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. We have immediately commenced discussions with an encouraging list of UK and International interested parties and would encourage any further interested parties to contact us as a matter of urgency.”
