More deliberation and responsibility needs to be brought to transactions by dealers, buyers and sellers in the classic car world, London law firm Healys has warned.
This is following the news announced this week (11/09/2018) of the appointment of Alvarez & Marsal as administrators to the troubled historic car sales, restoration and preparation business JD Classics which had previously been perceived as a beacon in the sector.
Clive Robertson, who heads Healys' classic car group, said: that whilst the administratorsare reportedly hoping to find a buyer for the business, there will be "considerable concern amongst a diverse group of parties who will be affected, including staff, investors, lenders, trading partners and not least, those with cars at the Mayfair and Maldon premises for sale or restoration.”
Mr Robertson said that there had been rumours of financial irregularity at the business which were apparently confirmed in March of this year when judgement in the case of Michael Tukes v JD Classics was given, with several cases lodged by the same claimant still pending.
"It may be some time before the full picture emerges," Mr Robertson warned, adding that it "could be premature to be seeking to know what lessons, if any, can be learnt, but it may be no more simple than saying, that in such a relatively new and fast-growing industry, balance and reason may have been left behind, so that more deliberation and responsibility needs to be brought to transactions by dealers, buyers and sellers.”
Mr Robertson went on to advise that due diligence was key in such high value and high profile activities.
“There has probably not been a more important time to make use of skilled and established legal advice", Mr Robertson concluded. "You’d not buy a house without a conveyancing solicitor, so why spend, potentially, more money without similar professional advice and guidance?”
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