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The Independent Automotive Aftermarket Federation

Reman group's UK arm appoints administrators

Date: Thursday 17 March 2022

The Coleshill-headquartered UK arm of Remy Automotive UK Ltd. has appointed administrators who are hopeful that "significant parts" of the wider group can be rescued.

The motor parts remanufacturing business has appointed Paul Zalkin and Andrew Watling of Quantuma Advisory Ltd as joint administrators.

With a brand history dating back to 1896, the Remy group operates globally and is a supplier of remanufactured starter motors, alternators, brake assemblies and steering products.

The 15-strong UK subsidiary operates as the group's sales and distribution channel for the UK, alongside its sister company in Belgium, which supplies and distributes Remy products across Europe.

The company's manufacturing facilities are based in Tunisia and Hungary. Quantuma is also engaged as restructuring and M&A adviser to Remy in Tunisia and is working with colleagues in Belgium and Hungary.

The group was funded by US corporate and private investors. However, having injected a significant amount of emergency working capital throughout the Covid-19 pandemic, investors were unable to continue funding the business and withdrew support earlier this year.

Zalkin said:

"There is, undoubtably, a fundamentally sound and viable remanufacturing sales and distribution business within the Remy group, of which Remy Automotive UK is an important part.
"Historic group wide balance sheet issues can now be overcome using insolvency processes to restructure the assets. Working alongside my counterparts in Belgium, Hungary and Tunisia, I remain hopeful that it will be possible to rescue significant parts of the group."