As soon as exhaust supplier Bosal entered administration the aftermarket grapevine turned its sights on a new company that was formed at the same Walton Summit Road address last October.
Bosal Preston was incorporated on October 30th 2012, just over two months before administrators Duff and Phelps were called in on Bosal last Friday January 11.
Some in the aftermarket have been quick to suggest that Bosal was put into administration to avoid paying a group of 48 employees their full redundancy package, and legal costs after the case went to court, and that Bosal Preston would simply take up the reins once again without this financial burden and great liabilities going forward.
Bosal had unsuccessfully argued that the ‘enhanced’ redundancy package negotiated before the employees were dismissed in 2007 was drawn up in very different economic conditions and should not be upheld. Bosal said the agreement lapsed in 2004, but Mercantile Court in Manchester disagreed, found in the employees favour last July and left Bosal facing a total potential bill of more than £840,000.
A spokesman for Bosal said it would not comment on speculation surrounding the new business, but described Bosal Preston as a ‘dormant company’. The spokesman said it was formed last October as the company was looking at a variety of options for the future and said there were no plans for the business.
Besides the large redundancy bill facing the company, Bosal also blamed the switch to stainless steel exhausts and a move by rivals to production in Eastern Europe for its financial difficulties.