Parent company of London Black Cab maker placed in administration

Today Pricewaterhousecoopers (PWC) confirmed that Manganese Bronze, parent of Taxi manufacturer London Taxis International had been placed in administration.

A statement was issued earlier today advising of the sad news:
‘Manganese Bronze Holdings PLC (the “Company”), the manufacturer of the world famous London taxi, announces that Matthew Hammond, Tony Barrell, Ian Green and Mike Jervis, all of PwC, were today appointed joint administrators (the “Administrators”) of Manganese Bronze Holdings PLC, LTI Limited, Manganese Bronze Services Limited and Manganese Bronze Property Services Limited (together the “Group”).’

The Administrators’ immediate priority is to secure funding to resolve the steering box recall announced on 12 October 2012. The Administrators are reviewing the Group’s current financial position to develop a range of options to rescue the business or alternatively dispose of its assets to an investor that can secure the future of the London taxi. The Administrators have immediately commenced discussions with a number of interested parties from the UK and overseas and ask any further interested parties to contact them as a matter of urgency.

As a result of the appointment of the Administrators to the Group, Grant Thornton UK LLP and MC Peat & Co have today resigned from their respective roles as Nominated Adviser and Broker to the Company with immediate effect. Pursuant to AIM Rule 1, if a replacement Nominated Adviser is not appointed within one month, the London Stock Exchange may cancel the admission of the Company’s securities from trading on AIM.

Accordingly the potential cancellation time and date is 7.00am on 3 December 2012.
The plain facts of the situation are that with immediate effect 156 members of staff will be facing redundancy – 99 jobs from the Coventry factory, and 57 staff members across the six regional dealerships. However unconfirmed rumours suggest that staff are not taking this decision lightly – Taxi blog claimed this evening that:
‘Workers at the troubled Coventry-based maker of London black cabs are believed to have locked themselves inside their factory after being told of job losses. Manganese Bronze had to call in administrator PWC after failing to gain new funding.’

Unite expressed ‘outrage’ that 156 workers were to be made redundant and called on the Government to step in to save the manufacturer of the famous vehicle.

National officer Roger Maddison said: ‘Only last night PWC were telling us there were significant interested parties. Now the administrators are ruthlessly sacking over 150 highly-skilled workers.

‘The black cabs are world-famous and we believe this company has a future. How can PWC treat this company as a going concern with virtually no staff?
‘The black cab is part of Britain ’s car manufacturing heritage. The Government must now be on standby to save this historic company from being left to the vultures.”’
AROnline cannot confirm this news at present, but rest assured we will give you the latest news on this potential situation as it happens.