150 jobs saved after tyre firm sold out of administration

Tyres on the Drive

The jobs of 150 people have been saved after a Cheshire mobile tyre fitter was sold out of administration.

Tyres on The Drive, which is based in Crewe, has been sold in a pre-pack deal to True – a retail and consumer focused investment firm.

True has backed companies including online furniture retailer The Cotswold Co, the direct-to-consumer British bike builders Ribble Cycles, Frugi, the e-commerce driven childrenswear retailer and Zwift, the multi-player online technology platform for athletes transforming the indoor fitness market.

Sarah O’Toole, Eddie Williams and Jonathan Roden from Grant Thornton were appointed joint administrators to Tyres On The Drive .

Immediately following their appointment, they concluded a sale of the business and assets to True.

Following the sale, all 150 employees have been kept on with no redundancies made and operations continue as usual for the disruptive fast-growing retailer.

Sarah O’Toole, joint administrator and partner at Grant Thornton in Manchester, said: “After an accelerated sale process, I am delighted to have concluded a sale which provides the workforce and suppliers with some positive news around the future of this well-known brand.

“I wish the business every success in the future. The sale via ‘pre-pack’ was required to provide the business with as much stability as possible by securing a new owner and finance for the business.

“This deal will see 150 jobs transfer to the new owners and allow the business to continue to trade as normal.”

On behalf of Tyres On The Drive’s board chief executive Ray Fernandez added: “True’s investment is tremendous news for Tyres On The Drive and its employees.

“I am delighted that True, with such a strong e-commerce track record has chosen to support our team and the company’s stakeholders.

“Whilst it is business as usual, having an aligned shareholder with an appetite to invest in the team and the proposition will allow us to fulfil our ambitious growth and development plans.”

Matt Truman, chief executive and co-founder of True, said: “Tyres On The Drive is a business fit for the future of the automotive industry.

“Most importantly, it is a business loved by customers. Through its proprietary software platform, it is uniquely positioned to deliver its leading e-commerce services to consumers and businesses alike whilst developing its software for partners across the world.

“We look forward to supporting the management team in the execution of their vision and are delighted to continue the journey we started in 2014, when we first invested in Tyres On The Drive.”

True was advised by the leading law firm, Jones Day and Grant Thornton was advised by Simmons and Simmons LLP.

Established in 2011 Tyres On The Drive fits customers’ tyres at home or at work, with access to more than 80% of the UK population.

The company was founded in 2011 by Dominic Clark, a former Michelin brand manager who grew “frustrated” with the auto industry and set up his own platform.

The company received its first venture capital investment, a sum of £340,000 from The North West Fund for Venture Capital, the following year.

Two years ago the firm secured £8m in funding after Halfords took a minority stake in the business.

At the time existing shareholders MMC Ventures and True Capital also participated in the funding round.

True is Europe’s only retail and consumer sector specialist that operates across the entire investment vertical.

True has total funds under management of £200m and invests in retail, consumer and leisure sector business models which represent the future of the industry and in just over 5 years.

True has made over 40 growth and private equity investments.

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