Employees And Customers Lose Out As Car Servicing Firm Goes Bust

It is always a great shame when a company goes bust. The employees who worked for the company lose their jobs, which is never something that you wish to see, but there is also the fact that many customers may miss out on services provided by the firm. This is the case with Carcraft, a car servicing company from Birtley, who have closed down.

Lynda George has been with the firm more than five years and she spoke to local media about her shock on hearing the news. Lynda said; “I was employed there and I and my colleagues are now unemployed. We were told to ring customers at 4.30 on Wednesday and cancel the following three days appointments. We were told the reason was that the 3rd party liability insurance was not in place so there was no cover if anyone was injured on the premises. There were some very irate customers who had been booked in for weeks for MOT’s and services. But we told them we would rebook them for next week, so up to that point we never knew the company was about to go under. Then on Thursday we were told not to answer the phone and we were then called into a meeting with the receivers to be told Carcraft were ceasing to trade. I feel sorry for those customers who have lost out on their Drive Happy Warranty, I hope someone can sort this for them and they get what they paid for.”

The firm has experienced a quiet time in the past month or so but many employees were putting this down to the beginning of a new financial year as opposed to anything which would impact on the business.

Many customers will find that their warranties are now worthless

The employees of the company will receive a great deal of sympathy from many people, but the customers of the company have been harshly treated as well. It is believed that customers who had service deals or warranties with the company will have lost these deals due to the firm going bust.
One customer who has lost out is Elaine Mulligan, who read about the news in her local newspaper. She gave a statement to the same paper, saying; “Unfortunately I bought a car servicing/MOT/warranty contract from this company in Nov 2014. This was sold to me with great assurance by the salesman as a cost effective means of maintaining my vehicle and I was stupid enough to believe him. It looks like I won’t be getting anything in return for that and on top of that will have to find the extra money to maintain the car which hasn’t even had its first service yet. Not great in this economic climate.”

Carcraft were the 7th biggest dealership in the country, with 10 forecourts but it seems as though the administrators have no plans to allow customers who purchased MOT deals, warranty deals, servicing or roadside assistance deals to remain covered. Daniel Smith of Grant Thomson is a joint administrator, and he said; “We are currently working to better understand the volume and nature of the impact on Carcraft’s customers.”

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