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Patricia100

Lunar Caravans In Administration

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This might be good news for employees and future customers. However it will interesting to see if the new owners care about past customers and take over liability for warranties. Unlikely in the event of a typical pre pack! Having purchased a 2019 model Clubman around 10 months ago, I can’t say I’m overjoyed at the moment!

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1 hour ago, Keith100 said:

This might be good news for employees and future customers. However it will interesting to see if the new owners care about past customers and take over liability for warranties. Unlikely in the event of a typical pre pack! Having purchased a 2019 model Clubman around 10 months ago, I can’t say I’m overjoyed at the moment!

It's unlikely that any buyer could afford to take on previous liabilities as that could be an unknown figure that could finish them before they have even started. Realistically the warranty is just a promise that Lunar made to their dealers who the  pass the benefits on to their customers. As has been said before the customers contract is with the selling dealer.

Being realistic the  benefit is the continuity of production and supply of parts, drawings etc etc.

 

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I wonder if this is the same guy - Nick(Nicholas Marks) joined James Andrew International in 2010, when his niche practice was purchased by James Andrew International. He specialises in the luxury retail and the leisure market, advising clients on the acquisition and disposal of hotels, restaurants and retail premises throughout Europe the Middle East and USA. With over 20 years’ experience in this sector Nick has carved out a niche in the mainly private and property company sector, identifying specific opportunities and has advised on many high end hotels throughout Europe and US as well as retail and restaurant acquisitions throughout the UK.

Edited by emikegd

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I think it’s pretty obvious that a purchaser wouldn’t take on all previous liabilities. However they could consider taking on the warranties as this would generate goodwill amongst customers such as myself. The potential cost of warranty claims can’t be all that bad. If they are, it can’t say much for the quality of previously manufactured Lunar caravans. I would have thought the goodwill generated by taking over the warranties would outweigh the potential claims cost. If the warranties aren’t taken over, I for one won’t be buying another Lunar so that’s at least one customer gone! I suspect other people may well feel the same. 

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14 minutes ago, Keith100 said:

I think it’s pretty obvious that a purchaser wouldn’t take on all previous liabilities. However they could consider taking on the warranties as this would generate goodwill amongst customers such as myself. The potential cost of warranty claims can’t be all that bad. If they are, it can’t say much for the quality of previously manufactured Lunar caravans. I would have thought the goodwill generated by taking over the warranties would outweigh the potential claims cost. If the warranties aren’t taken over, I for one won’t be buying another Lunar so that’s at least one customer gone! I suspect other people may well feel the same. 

Purchasing a limited company, even in administration, as a going concern does not necessarily cancel existing obligations.  

As long as liquidation is avoided warranties should be  OK.

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Have the new owners said they will continue to manufacture Lunar caravans? Or any caravans?

 

 

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In fairness to add some balance robinsons caravans website described Lunars situation when it happened and that they would honour any warranty work on a caravan purchased from them....nothing us clued up people dont already know eg warranty with supplying dealer etc....but good they were upfront about Lunars situation.

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Just to put another twist to this, the agreements the suppliers had with the previous Lunar would have been with that particular ownership, and any warranty issues with their individual products would be with afore mentioned Lunar owners. Now, in most cases in my experience those supply / warranty contracts would need to re-negotiated with the new owners and new contracts drawn up. Now this can work both ways. The new owners may look at a previous supplier and decide there are to many claims or they have identified a better product that they negotiate a supply. Equally an old supplier may look at the new Lunar and decide the risk is to great and walk away from it. Which ever way there are going to be winners and losers. Again from experience I think it highly unlikely that a supplier to the old Lunar will honour warranties in the field with the new Lunar, unfortunately leaving the owner, dealer and insurance companies to fight it out.

Good luck to anyone with a Lunar still in warranty and has problems, if I were in the market for new caravan I certainly would be walking away from a Lunar branded product irrespective of how good the deal looks.

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16 hours ago, Stevan said:

Purchasing a limited company, even in administration, as a going concern does not necessarily cancel existing obligations.  

As long as liquidation is avoided warranties should be  OK.

Had they purchased Lunar Caravans Ltd. and kept the name you would be correct. However, a new company, Lunar Automotive Ltd. have seemingly purchased the assets of the previous company and unless it was a condition of the purchase or they act out of the kindness of their hearts, they may have no liability to customers of the former entity.

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1 hour ago, Legal Eagle said:

Had they purchased Lunar Caravans Ltd. and kept the name you would be correct. However, a new company, Lunar Automotive Ltd. have seemingly purchased the assets of the previous company and unless it was a condition of the purchase or they act out of the kindness of their hearts, they may have no liability to customers of the former entity.

Yes. purchasing the assets and starting a new company under a similar, but different name is very different to buying the company as a going concern. In administration, either can happen, the latter being a form of liquidation.

It seems that earlier Talk of a "buyer for the company" was inaccurate.

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On 15/08/2019 at 19:38, Keith100 said:

...The potential cost of warranty claims can’t be all that bad. ... 

I was talking to my mobile service chap last week (the axle on my bailey has failed), and he said that in addition to all the baileys in the storage yard with tiny clearances to the wheel boxes (so will likely need new axles in due course), he had a number of Lunar owners with severe damp awaiting repairs.  He's never been busier, he said.

 

18 hours ago, Stevan said:

Yes. purchasing the assets and starting a new company under a similar, but different name is very different to buying the company as a going concern. In administration, either can happen, the latter being a form of liquidation.

It seems that earlier Talk of a "buyer for the company" was inaccurate.

Yep, this is how many 'phoenix' companies operate and escape their liabilities.

 

https://www.gov.uk/government/publications/phoenix-companies-and-the-role-of-the-insolvency-service/phoenix-companies-and-the-role-of-the-insolvency-service

Edited by Tigger

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39 minutes ago, Chappers said:

 

Very interesting article and only time will tell ? 

 

 

 

Dave

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