Hundreds of jobs could be at risk after a group of vehicle manufacturers entered administration.
Teneo has been appointed to oversee the process at WN VTech, the parent company to Mellor and minibus converter Treka as well as a number of other specialist vehicle conversion businesses. Previously known as Woodall Nicholson, the group was acquired by Rutland Partners in March 2020.
The group reported a loss of almost £2.6m for 2022, down from £5m, and a turnover of £78m. According to documents filed with Companies House, WN Vtech Holdings employed almost 500 people during 2022. WN Vtech Limited employed 230, Treka Bus Limited employed 69, Vehicle Conversion Specialists Limited employed 111, Promech Technologies Limited employed 41 and JM Engineering (Scarborough) Limited employed 19.
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A statement from Teneo said: "Daniel Smith and Julian Heathcote, of Teneo Financial Advisory Limited, have been appointed as joint administrators of WN Vtech Holdings Limited and its subsidiaries: WN Vtech Limited, Treka Bus Limited, Vehicle Conversion Specialists Limited, Promech Technologies Limited and JM Engineering (Scarborough) Limited.
"Like many companies in the automotive sector, the group has experienced challenges around supply chain issues which has impacted fulfilment of orders and working capital. The joint administrators are continuing to trade all businesses as usual, while exploring opportunities for a sale."
Teneo declined to comment about whether any jobs had already been lost at the group or whether redundancies are being planned following the group entering administration. Teneo has been involved in a number of high profile administrations in the North West in recent years, such as Studio Retail Group and Missguided.
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A statement on WV Tech's website states: "Daniel James Mark Smith and Julian Heathcote were appointed joint administrators over Treka Bus Limited, Promech Technologies Limited, Vehicle Conversion Specialists Limited, WN Vtech Holdings Limited, JM Engineering (Scarborough) Limited and WN Vtech Limited (together 'the Companies') on 20 November 2023.
"The affairs, business and property of the companies are managed by the joint administrators. The joint administrators act as agents of the companies and contract without personal liability."
The news comes after group company Mellor secured an order of 21 Strata buses from Transport for Greater Manchester (TfGM), through orders from First Bus and Stagecoach.