A STRUGGLING super car dealership has faced another blow after it entered administration.
Furious customers scrambled to reclaim their plush vehicles after GVE London, based in Uxbridge, London, collapsed.
Now, the administrator of the firm has resigned just 22 days after being appointed.
On September 1, Farheen Qureshi of Parker Getty Limited was appointed to oversee the administration of GVE.
However, on September 22, the High Court green-lit her departure with immediate effect.
The announcement of her resignation was shared via Companies House on October 8.
Her departure has not been officially explained, but joint replacements have already been named.
David Hinrichsen and Arvindar Jit Singh of the Birmingham-based FRP Advisory will split administrative duties going forward.
The two have already filed a “statement of administrator’s proposal” through Companies House soon after Qureshi resigned.
The letter starts off by summarising GVE’s financial situation and outlining what creditors might anticipate in the months ahead.
It reveals that the firm owes a total of £449,111.89 to its 14 creditors.
The list also includes nine consumer creditors that GVE owes £700,869.30 to.
The administrators are currently evaluating the company’s assets, but they do not believe that they will be enough to pay off all of the secured obligations.
A shortfall of around £1.8 million across all creditors is still predicted, even if all unsecured and HMRC claims are to be wiped off.
Along with overseeing distributions to secured and preferred creditors, Singh and Hinrichsen are also looking at possible recovery claims and director behaviour.
If all goes according to plan, the firm will be dissolved at the end of the administration term.
However, the administrative costs are already mounting with the newly departed Qureshi owed £137,840 plus VAT for her time.
Meanwhile, £52,945 with VAT is already outstanding to the present joint administrators.
Customers’ fury
With more than 1.5 million followers on TikTok, the dealer was particularly popular on the platform.
Before the company’s financial troubles, reviews were quite positive, with enthusiasts lauding the dealer’s collection of Ferraris, Lamborghinis, Rolls-Royces, Bentleys, and more.
One of the main causes of the dealership’s financial issues seems to stem from its heavy dependence on the Sale or Return (SOR) model, in which it sold cars on behalf of owners.
Shortly after entering the administration, GVE’s car park was filled with “irate owners” trying to retrieve their vehicles.
The situation reportedly escalated to the point of police intervention.
This also saw prominent figures in the automotive world, including supercar seller Tom Hartley and influencer Yianni Charalambous, reveal they had taken calls from affected customers.
The joint administrators acknowledged in the most recent documentation that “a number of complications” had prevented their predecessor from “securing the vehicles at the yard.”
They added: “Since the joint administrators’ appointment, they have undertaken significant works to progress the matters following the handover from the former administrator, the immediate priority being to secure the company’s remaining assets and / or SOR vehicles held at the yard.
“The joint administrators engaged with the landlord of the yard and an agreement was reached to allow immediate access to collect the vehicle assets thought to belong to the company, together with the release of the SOR vehicles to the rightful owners, in so far as they could be ascertained on the information provided.”
