Its official now.

Hellrazer

http://www.sbpost.ie/post/pages/p/story.aspx-qqqt=IRELAND-qqqm=news-qqqid=42121-qqqx=1.asp

Just thought Id share the info.

TwoShedsJackson

Tom Canavan Motors is wound up with €2.8m debts
Sunday, May 31, 2009 By Gavin Daly
Tom Canavan Motors, a Dublin Volvo and Honda dealership, has collapsed with debts of almost €2.8 million.

The company behind the dealership on East Wall Road was wound up at a creditors’ meeting last week, and accountant Michael McAteer was appointed liquidator. The Revenue Commissioners and company employees, who are preferential creditors, are owed more than €710,000.

Almost €2.1 million is owed to a further 60 unsecured creditors, including a number of other motor businesses. The biggest unsecured creditor is a related company called Kembali, which is owed €1.5 million.





Bank of Ireland is owed €148,000 relating to an overdraft facility. Volvo Car Finance is owed almost €180,000 and Volvo Ireland is owed almost €56,500.The company has assets worth just €206,000, leaving a deficiency of almost €2.6 million.

Tom Canavan Motors sold and serviced Volvo and Honda vehicles, but recently stopped selling new Hondas. Industry sources said that the firm could not meet terms and conditions set out by Honda for this year. In recent days, the garage has begun selling Ford vehicles under the name of Canavan Ford at the same site on East Wall Road.

The most recent accounts for Tom Canavan Motors show that the company made a loss of more than €551,000 in the financial year to the end of August 2007.

At the time, the directors of the firm said they were ‘‘satisfied that the company can maintain its financial position through the current market difficulties’’.

However, a plan to demolish the existing garage and build 103 apartments, a new garage and a six-storey office building was denied planning permission.

Earlier this year, Tom Canavan Motors featured in a list of tax settlements with the Revenue Commissioners after paying a total of €295,729 in tax and penalties.

Several car dealerships have gone out of business in recent months as a result of the collapse in demand in the sector. Just under 37,000 new cars were registered in the first four months of the year, down 65 per cent from 106,307 cars in the same period last year.

For those on firewalls/work etc.

igglou

Wow, that's very interesting!

I bought my last S40 from there in 07 but when we went to change in Jan, they didn't want to know. Glad I went elsewhere now.

MSporty

They were making losses during the good times, it was pure fantasy on the directors part to think they could make it through the recession!

Alun

MSporty wrote: »

They were making losses during the good times, it was pure fantasy on the directors part to think they could make it through the recession!

Looking at those figures, I'm not surprised. Debts of €2.8 million and assets of only €206k !!! As unfortunate as it might be, I get the impression that some of these companies going under would have done so sooner or later anyway, and the 'current economic climate' is merely hastening their demise.

R.O.R

They are huge debts!

Bit worrying for anyone selling Volvo & Honda's

unkel

MSporty wrote: »

They were making losses during the good times

Indeed, a loss over '07 means the company was obviously doomed already.

OP - is that where you work(ed)? If so, I'm sorry you and your colleagues lost your jobs

alias no.9

MSporty wrote: »

They were making losses during the good times, it was pure fantasy on the directors part to think they could make it through the recession!

It seems this was a case of another business being held together with bandaids in the hope of making it big in property by getting planning permission to redevelop their property assets with the associated windfall. I feel very sorry for the staff, who appear to have outstanding wages/salary owed even before this terrible news.
The directors of this company and any other company who neglected the supposed core business of the company while they had wet dreams about property should be barred form being directors of companies for life. If a business cannot return better value to its shareholders through investing in its core business than it can from unproductive property assets, it simply shouldn't be in business.

niceirishfella

they were banking on getting that planning thru to make a few mill on the redevelopment.

BostonB

I always thought they were pretty pricy tbh.

Lord Nikon

If i worked there, I know what I would be taking instead of a wage.

Darragh29

I said it before on Motors and this is another example of it. A motor business that started meddling in property development and they dropped the ball when it came to their core business. I bet if you asked the dealer principal of that business what his margin was in his service department for last August he wouldn't have a clue but if you asked him how much the site for the apartments was worth last August he'd be able to rattle it off for you...

It's very sad what is happening, especially for staff. You can't blame them for a buckaroo dealer principal...

Darragh29

I noticed the large showroom at the right had end of the motor mall on the Tallaght by-pass, was completely empty of cars this morning, all cars gone and building deserted. Anyone know what the story is there? It's the showroom on the right hand end of the block where FastFit in Tallaght are located and also Ricard Motor Factors...

R.O.R

Darragh29 wrote: »

I noticed the large showroom at the right had end of the motor mall on the Tallaght by-pass, was completely empty of cars this morning, all cars gone and building deserted. Anyone know what the story is there? It's the showroom on the right hand end of the block where FastFit in Tallaght are located and also Ricard Motor Factors...

Think they were called Tallaght Motors. Pretty sure it was empty last Thursday - no idea what happened though.

milltown

Is that the place that used to be Tallaght Ford a few years ago?

bennyx_o

milltown wrote: »

Is that the place that used to be Tallaght Ford a few years ago?

It's where the Alfie Byrne road meets the East Wall road. They seem to be selling Fords now, not sure if it's under Tom Canavan though

milltown

bennyx_o wrote: »

It's where the Alfie Byrne road meets the East Wall road. They seem to be selling Fords now, not sure if it's under Tom Canavan though

I meant the place at the Square that was mentioned.
It turns out they have moved to Old Bawn for cheaper rent.

bennyx_o

milltown wrote: »

I meant the place at the Square that was mentioned.
It turns out they have moved to Old Bawn for cheaper rent.

Sorry, only skimmed through the article

I.S.T.

MSporty wrote: »

They were making losses during the good times, it was pure fantasy on the directors part to think they could make it through the recession!

How on earth could anyone make a loss during the good times???!! Creative accounting?

Darragh29

milltown wrote: »

Is that the place that used to be Tallaght Ford a few years ago?

Yeah but Tallaght Ford moved from there and another business was selling cars from there up until last week and now the place is abandoned... Don't know who they were or where they've gone???

Hellrazer

IrishSpeedTraps wrote: »

Creative accounting?

Never!!!
Anyone got a link to the "Ranting and Raving" forum ;)

Looks like none of are going to see a penny of what we`re owed.And theres me hoping for the few quid to buy a car.As it is Im driving a POS that I bought on adverts for 100 euros.

milltown

As said, they've just moved to Old Bawn for cheaper rent. He's a mate of my brothers and still doing very well apparently.

I.S.T.

Hellrazer wrote: »

Never!!!
Anyone got a link to the "Ranting and Raving" forum ;)

Looks like none of are going to see a penny of what we`re owed.And theres me hoping for the few quid to buy a car.As it is Im driving a POS that I bought on adverts for 100 euros.

Did you work there? Sorry to hear that man. Hope you find something else soon.

Hellrazer

IrishSpeedTraps wrote: »

Did you work there? Sorry to hear that man. Hope you find something else soon.

Im one of the "lucky" ones that got kept on.But my arse is still hurting from bending over and taking the new T&C`s.