Red Driving School's parent firm in administration

LVG, the parent company of driving instructor business Red Driving School, the UK's third largest, has gone into administration.

However administrators MCR said they had already received a number of offers and a buyer could soon be unveiled.

LVG employs 400 people in total across three offices, but all the Red Driving School drivers are franchisees.

It also owns two other businesses under the Red brand - Red Instructor Training and Red Fleet Training.

Red Instructor Training trains would-be driving instructors, and Red Fleet Training is employed by companies to test and improve the driving skills of their employees.

'Profitable operation'

LVG's 400-strong workforce includes 200 people at its head office, and 150 spread across two "operational support facilities" in Liverpool and in Billingham near Middlesbrough.

"We are confident a buyer will be secured as the most recent financial reports indicate the business has been quite a healthy and profitable operation." said joint administrator Andrew Stoneman of MCR.

"It only entered administration due to a lack of funding and investment."

Posted at 10:31PM Feb 18, 2010 by Kelly Board in Insolvency  |  Comments[0]