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The Halfords statement reads: The UK operation has assured Halfords (as Schwinn/GT largest world-wide customer) that it will be able to fulfil its stock commitments.
Halfords is actively working with Schwinn/GT to ensure the continued availability of the brand.
The business is expected to be sold as a going concern.
This is an expectation shared by the receivers.
Lee Manning, an administrative receiver from Kroll, Buchler, Phillips of London who, in effect, is now running Schwinn/GT (Europe) Ltd. said The legal entity that is Schwinn/GT (Europe) Ltd. will not be bought but the assets will be. We only sell assets, not liabilities.
Schwinn/GT UK Sales Ltd. owes about £10 million, although Manning says the final figure is not yet available. It has stock worth perhaps £6 million. The receivers have been approached by a number of bike trade companies eager to buy stock but they want to sell the company as a going concern, and specifically want to sell on the distribution agreement. Companies outside of the bike trade have been contacting the receivers since a for sale sign was placed in the Financial Times on Tuesday.
Weve had a pretty good response, said Manning.
The 11 containers of bikes sitting in bonded warehouses in London have yet to be moved although the receivers could raise bank loans to pay for their release, thereby generating cash.
