George White motorcycle dealership goes into administration
THE UK's leading indepedent motorcycle dealership, with three oulets in Plymouth, has gone into administration.
George White Motors Limited has closed its eight outlets across the UK and all staff, including 22 in Plymouth, have been made redundant.
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George White, Plymstock
Former owner Mike Grainger, who sold the business to the George White Motors Limited chain for an undisclosed sum in 2010 but stayed on to work in sales, abandoned a trip to Geneva yesterday to enter talks with administrators from business advisors Deloitte.
He told The Herald: "It's a very sad day for me. The whole lot has gone."
When Mr Grainger sold his famous GT Motorcycles dealership – which he started in 1978 – to George White it included outlets in Plymouth, Paignton and St Austell.
But the Cornish branch was closed last year and there were some redundancies in Plymouth.
Mr Grainger said: "I've had my concerns for a little while. They are buying it over a two-year period. They are a little bit behind. I have a problem." He said he was owed a "considerable sum" and added: "I'm 61. There was an opportunity for me to retire but it's not worked as planned."
Mr Grainger, however, has retained the £1.5million, 12,000sq ft, purpose-built showroom he moved the dealership to in 2007 and said he was exploring whether a rescue operation could be mounted.
"I have still got retention of title to quite a lot of the stock," he said. "I hopefully will salvage what I can, and I own the premises: they rent the showroom from me."
He said Plymouth needs such a motorcycle dealership and added: "I'm considering the options".
Mr Grainger said that at the time of the 2010 sale, GT Motorcyles had an £8million turnover and George White a £30million turnover.
But despite this he felt that George White could not "weather the storm".
"I believe the recession has affected them. It's tough out there," said Mr Grainger.
Richard Hawes and Robin Allen of Deloitte have been appointed joint administrators.
61 staff have been made redundnandt immediately with nine kept on for a short period to assist the adinistrators.
George White, which bought out GT Motorcycles in 2010, has three outlets at Elburton Road in Plymstock.
As well as the main George White dealership it has a Honda specialist and a factory outlet.
The company also has dealerships in Swindon and Torbay as well as clothing outlets in Bolton, Donnington and Slough.
Its headquarters are in Swindon.
Industry newspaper Motorcycle News today said George White owner Steve Gannicott confirmed to them that the group had ceased trading and had filed a notice of intention to appoint administrators.
Richard Hawes said the 50-year-old company, with a £25million a year turnover, had been hit by porr trading over the last two years.
He said increasingly difficult market conditions paired with low margins had resulted in 'cash flow constraints'.
He said: "There are no funds currently available to be able to continue to trade the business."
He said the nine staff kept on would help complete outstanding orders and close the business premises in 'an orderly fashion'.
There was no reply when The Herald rang the 12,000sq ft Plymouth showroom and factory outlet yesterday.
At the separate Honda showroom next door, which sold new and used bikes, a recorded message said no one was available to take the call.
At George White head office, in Swindon, a spokeswoman said "the whole company" had closed, including the Plymouth outlet.
She added: "I can't make any other comment."
The George White website was closed down yesterday afternoon.
In Plymouth it sold bikes from brands including Honda, Yamaha, Kawasaki, Suzuki, Ducati, Gilera, Vespa, Moto Guzzi, Aprilia, Derbi and Piaggio.
26 Comments
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by AnneTeak
Thursday, January 26 2012, 4:56PM
“"The doors are shut and that's it".
http://tinyurl.com/7rfgqj6”
by devanssom
Thursday, January 26 2012, 3:01PM
“I really do feel for Mike Grainger at the moment, thaughts are with you Mike. Would be nice to see someone like Bridge Motorcycles go in there, or maybe even the return of GT Motorcycles as Mike still owns the buildings and a lot of the stock held by George White's.”
by BobC123
Monday, January 23 2012, 10:18AM
“It is a sad sign of the times when a business fails but in all honesty I don't think that George White has made very much effort in Plymouth since acquiring GT Motorcycles.
The company has done virtually no local advertising, whereas GT Motorcycles was always in The Herald, The Cornish Guardian and other local press with advertising and articles of interest. GT was also an important part of the local motorcycling scene, involved with, for example, the Plymouth Megaride, The Exeter Bike Show and anything else that was going on in our region. Local motorcyclists thought of GT Motorcycles as their dealership and held MIke Grainger in high regard. George White has lost this good will, they advertised nationally and supported British Superbikes but, as a former GT employee and long-time customer, I can say that we always found that local advertising worked best.
Whether more local presence would have made a difference in the long run is now academic. My own thoughts are that the acquisition of GT Motorcycles on very favourable terms is probably what kept the George White empire going for the past year or so.
My thoughts are with the people who have lost their jobs at this very difficult time and the creditors of George White who may never see their money.”
by Bigredbbus
Friday, January 20 2012, 9:01PM
“OMG I feel so sorry for the staff and Mike. I have been a good customer over the years, recently purchased a new Kawasaki in October. Mike sold the business in good faith thinking he was giving the company a big backer to make it even better. I really hope he can form a rescue package. What a terrible sign of the times.”
by anicerrat
Friday, January 20 2012, 5:17PM
“What a shock to come home to. I feel sorry for all the people who have lost their jobs, people I have got to know since the mid nineties. I feel sure Mike Grainger will have a rescue plan lined up,I hope so anyway. (G.T motorcycles the return). Ironically, I tried to get a job there myself having recently been made redundent. :(”
by marc1964
Friday, January 20 2012, 4:24PM
“i brought my bike from GTs but never went back to get it serveced etc as its to far out of town if they need it for a day or two. Location Location Location”
by bumferret
Friday, January 20 2012, 11:48AM
“madmax76 you are spot on. I've been riding for 24 years, the last 20 as a fair weather rider...my bike is an ornament from November to March and you're right...there are other priorities in these economic times - I usually change my bike every 3 years but this one will be with me for at least another 2 years.
Pogle63, I'm not sure what planet you're on - George White's demise has nothing to do with your views of the WORLDWIDE banking system, businesses go out of business for very simple reasons - it's a gamble that either pays off or it doesn't...but it's vital that there are those out there who are prepared to take risks - that is capitilism and depsite what the popular view is, IT WORKS. I suggest you stop reading the Daily Mail and open your eyes.”
by pogle63
Friday, January 20 2012, 10:59AM
“Where has all the money gone? Intrest rates the lowest of all time, Banks quite literally bailed out by the state, which are now making profits still paying massive bonuses to staff and no interest on savings - yet companies and businesses are going under unable to get any cash or lines of credit?
What is happening in this country with Banks is quite frankly obscene. The banks attitude we re alright now the rest of you can suffer.
Recently I happened to go £2.70 over my agreed limit and immediately received a letter from Toytown Silly Bank (recently heavily bailed out highstreet bank) pointing out the consequences of my irresponsible borrowing, oh and slapping me with another £25 quid charge! The letter I sent back to them probably wouldn`t be published needless to say have not heard much from them since!
This country is definately FUBAR!”
by madmax76
Friday, January 20 2012, 10:58AM
“I think for most people motorbikes are a "toy" and not a necessity, and in this time of having to watch the pennies most people are cutting out the luxury of owning such a toy. Plus the fact that fuel and insurance prices are ridiculus!”
by streettriple
Friday, January 20 2012, 10:40AM
“What a sad day i have been a customer of G T from the beginning and bought all my bikes from there Hope something can be done to restart or find jobs for the staff some of who i have known for many years good luck guys.”