Car dealership Barry Curran Motors went into liquidation with a third of a million pound shortfall.
David Craine of Browne, Craine and Co was formally ratified as liquidator at a creditors’ meeting held last Wednesday.
Sixteen members of staff have lost their jobs as a result of the company’s voluntary liquidation.
Mr Craine said there was ‘a considerable number of creditors’ and debts totalled about £500,000. The statement of affairs shows a shortfall in assets over liabilities of £340,000.
He said given the scale of the debts, selling the business as a going concern was ‘not an option’ and his job now was to realise any remaining assets.
‘There is a very human element to this,’ he said.
‘I had to regretfully fire all the staff. It’s a desperately sad situation.
‘I feel sorry for Mr Curran who is 67 and has been 20 years in business. It’s very sad to see.’
All cars have already gone – most, being under finance, have been taken back by the finance houses while new Hyundai cars have been repossessed by the manufacturer.
Barry Curran’s premises on the Isle of Man Business Park in Braddan were leased so the only assets are parts, tools and other equipment, Mr Craine said.
The directors had met the week before and came to the conclusion the company would have to be wound up as it was not in a position to pay its debts.
Notice had to be given to all creditors.
The shareholders met last Wednesday to appoint the liquidator and that decision was ratified 15 minutes later at the meeting of creditors.
Mr Craine said 20 to 30 creditors attended the meeting at Burleigh Manor on Peel Road, Douglas.
As well as the banks, and about 30 local suppliers who are owed money, there could be a futher 50 creditors who joined a savings club in which customers pre-paid for the servicing of their vehicles, he said.
‘I’m trying to resolve that one but I very much fear that any member in that scheme may all be creditors. There are more than 50 of them,’ he explained.
Mr Craine said he had spoken to Hyundai who told him they were trying to get an approved garage in the island to service and repair new cars still under warranty. For used vehicles, however, any garage-issued warranties will have lapsed.
He said he had yet to speak to Subaru.
Creditors have been given until September 27 to provide the liquidator with details of their claimed debt.
Having relocated from Ramsey in 2007, Barry Curran Motors had a showroom on Demense Road, Douglas, before the Hyundai dealership moved to its ‘car superstore’ on Isle of Man Business Park.