Quinton Hazell enters administration

  07 February 2013

Automotive parts company Quinton Hazell has gone into administration, the company announced today (February 7), and its main distribution centre is to shut.

The company, which makes and distributes auto electrical parts, brakes, cooling, steering and engine components, appointed a KPMG team as administrators for QH and its parent, the Klarius Group Ltd. Klarius is best known as a maker of exhausts.

The move followed a spell of difficult trading and was prompted by cashflow problems.

KPMG has sold the Klarius emissions business, which has headquarters in Cheadle, Manchester, to Klarius Products, meaning that its 234 workers will keep their jobs for now. KPMG expects to conclude this deal today.

The QH distribution division, based in Hinkley, Leicestershire, will cease to operate, meaning 42 staff will be made redundant. KPMG expects further redundancies will be needed at other sites around the group but there is no word yet on how outstanding parts orders or existing stock will be handled.

In addition, the intellectual property rights relating to QH are purchased by the I-Tec division of Tetrosyl. Tetrosyl is the company behind CarPlan, T-cut and Triplewax cleaning products, Bluecol screen wash and anti-freeze and a range of automotive refinishing materials.

Paul Flint, Joint Administrator and Associate Partner at KPMG, commented: ‘We are pleased to announce the sale of the Cheadle site – saving 234 jobs. Despite marketing the remaining divisions for sale, we were unable to find a buyer and have taken the difficult decision to wind them down.

‘Prolonged challenging trading conditions in the automotive parts sector impacted Quinton Hazell’s performance. This created cashflow pressures and affected Quinton Hazell’s ability to trade as a going concern.’

Klarius Group operates three subsidiaries in Europe; QH France SAS, QH Deutschland and QH España. These companies are separate legal entities and have not been included in the UK administration.

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