Car parts firm in administration

AROUND 600 jobs are at risk after a vehicle parts supplier was placed into administration less than a week after being bought by the UK’s leader in its field.

Pinco 1555, which trades as LSUK and is based in Sheffield, was bought by Euro Car Parts for an undisclosed sum last week.

However, ECP said it had been forced to place LSUK into the hands of administrators after failing to secure investment support for the business.

The firm said: “Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.

“After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with effect.”

ECP said continuing to run LSUK following the takeover was “a futile operation”.

Several parties have expressed an interest in buying LSUK, lead administrators Tenon Recovery said.

Wembley-based Euro Car Parts took over LSUK’s 53-strong branch network together with its subsidiaries M I Diesel Products, Protech Automotive (UK) and Yeovil Rewind.

According to reports, some LSUK staff turned up for work today and found themselves locked out. The firm has about 110 staff at its head office in Sheffield.

The group added that Tenon was planning to liaise with LSUK staff to advise them on the situation.