Firms eyeing up bust LTI

By Matthew Bates Wednesday 31 October 2012 Updated: 31/10 16:47

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Buy photos » LTI has called in administrators after recalling 400 cabs last month. 41.09.004.cov.jm7

AN ENCOURAGING list of companies is eyeing up bust taxi firm LTI, according to administrators.

Both national and international businesses are in talks to secure a future for the iconic London taxi, which is manufactured by the Holyhead Road based company.

Administrators at PricewaterhouseCoopers (PwC) are reviewing finances after LTI finally fell into administration on Tuesday.

Its parent company, Manganese Bronze, had posted a loss for four years in a row, with the final straw coming when shares were suspended last month and 400 new models recalled in a steering design fault scare.

Crisis talks to secure new funding failed the company announced it was entering administration.

PwC said it was looking to secure funding to keep the company secure while the recall was in operation.

A range of options are being examined to either rescue the business or "alternatively dispose of its assets to an investor that can secure the future of the London taxi".

Matthew Hammond, joint administrator and PwC partner, said: "Our immediate priority is to secure funding in order to explore the options rapidly developed by the Management team and key suppliers to resolve the steering box recall.

"We are reviewing the existing financial position to develop a range of options to rescue the business or alternatively dispose of it to an investor that can continue the business to a secure future for the iconic London Black Cab.

"We have immediately commenced discussions with an encouraging list of UK and International interested parties and would encourage any further interested parties to contact us as a matter of urgency."

The firm has a turnover of £75 million and employs 300 people, including 175 at its Coventry headquarters. Remaining workers are spread across dealerships in the city, as well as London, Manchester, Leeds, Edinburgh and Glasgow.

Joint administrators at PwC, along with Mr Hammond, are Tony Barrell, Ian Green and Mike Jervis.

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