BSM Sold for £1
British School of Motoring’s (BSM) nominal worth is £1 after administrators from business consultancy firm PricewaterhouseCoopers has sold the motoring organization to Acromas.
Last weekend, PwC administrators were reported to be closing a deal with Automobile Association (AA), and after approximately a day BSM was immediately sold to AA for £1. Around 1000 of BSM’s cars have been temporarily impounded at Cardiff docks following the firm’s declaration of insolvency.
At present, BSM has started paying what it owed to its creditors and staff.
Prior to BSM’s collapse, indications of the firm’s ailing financials were beginning to give off signs that it had no way to go but administration. The firm has been wrestling with its grim finances since it was taken over in 2009 by Abu-Haris Shafia and Nikolai Kesting in a £10 million acquisition.
Insiders were reported as saying BSM had been unable to pay its employees and leases on buildings.
Meanwhile, Acromas said BSM would still run under its existing brand. Acromas has previously acquired SAGA, another player in the motoring industry. Despite the joint ownership, Acromas stressed it would operate the two firms separately.
PricewaterhouseCoopers administrators said the takeover would contribute to the future of motoring school in Britain.
PwC has also handled a similar case early this month with Leaseway Vehicle Rental which went into administration early in December last year, though administrators are reported to be currently on the lookout for buyers.
Administrators have already declared redundancies in Leaseway’s sites in Glasgow affecting 33 jobs, four in Leeds, one in London, and three in Newcastle.