‘Loan and furloughing helped keep us solvent’
WHEN COVID-19 struck, one of Northern Ireland’s leading providers of tyres and automotive services, had just invested £2.5m in a new head office and distribution centre in Antrim and cash reserves were low.
But thanks to their ability to adapt, diversify as well as the invaluable support from the UK Government, Kerr’s Tyres & Auto has been able play a vital role in servicing and keeping the province’s key workers on the road.
Managing director Norman Kerr said: “The Antrim site used up our cash reserves and had a big impact on our cash flow.
“Unfortunately the coronavirus kicked in three months later, when we still didn’t have a chance to build up any cash reserves that we would normally have. So it had a massive impact on ourselves.
“But the problem was we had to continue trading because we supply the food sector and the white delivery van man.
“So our business had to continue. We had to pay suppliers, we had no choice in it.”
However thanks to a UK Government Coronavirus Business Interruption Loan Scheme loan of £500,000 through the Ulster Bank, as well as the furlough scheme, the family-run business was able to remain solvent and save over 50 jobs.
Norman said: “Had we not been able to get the UK Government loan scheme, it would have had a huge impact on our business. Our business, in essence, dropped probably 75 per cent within the first month.
“Thankfully that has grown steadily back since then.”