Industry insiders have voiced concern that struggling crash repairers could suffer after the recent collapse of Accident Repair Management Services (ARMS).
Administrators KPMG were called in to the work provider at the request of directors.
A KPMG statement said business had experienced “cashflow difficulties” following the loss of a major customer contract and ARMS was now being wound down.
The statement said: “Delays in payment from key customers resulted in significant pressure from its suppliers and the directors subsequently appointed administrators to protect the business from further action by creditors.
“The administrators now plan to work with directors and company staff to wind the business down in an orderly manner, collect debts due to the company and ensure realisations for all creditors are maximised,” the statement added.
Ray Holloway, RMI director of independent member associations, believed that dozens of bodyshops could be owed money following the ARMS collapse.
He told Motor Trader: “We are trying to find out how many of our members are involved and have been encouraging them to ring our helpline.
“If there are sufficient numbers, we can go to KPMG and try to open negotiations — so far 60 out of our 250-strong network have come forward.”
Holloway also believed bodyshops needed to carefully examine any future contracts to make sure they were protected if a work provider had financial problems.
He said: “My advice to repairers for the future is to look carefully at who is offering the work and ask for a guarantee. But I also understand it is difficult for a repairer working at 70 per cent efficiency to turn away work.”
The Body Repair Industry Campaign was also worried about the ARMS situation. Research director Shaun O'Reilly said: “It is very unsatisfactory.”