Dealer owing $4m in receivership
A Christchurch dealership has gone into receivership owing more than $4 million after encountering unfavourable trading conditions and falling margins on the sale of cars.
Good Cars, based in the suburb of Waltham, is owned by Sergey Serikov and Iouri Serikov and ran into difficulties late last year.
It was placed into receivership on December 4 by secured creditor AutoBridge, which was owed $2.17m.
Colin Gower and Diana Matchett, of BDO Christchurch, have been appointed as receivers. Their first report states Good Cars imported a variety of used vehicles from Japan and sold them online and at its dealership.
The business had total liabilities of $4.16m and other creditors listed in the February report include automotive, finance and shipping companies, while Westpac and Inland Revenue were owed $875,000 and $673,000 respectively.
“Prior to our appointment, the company experienced unfavourable trading conditions and a reduction in the margins being achieved on the sale of imported vehicles,” the receivers add.
“As a result, a number of vehicle loans were in default, and our appointor [AutoBridge] exercised their right to appoint receivers over the company.”
They note the directors have fully co-operated with the receivers during the receivership process.
