Cash-flow problems force business into liquidation
A former multi-million dollar Hamilton company, Marshall Transmissions, has been placed into liquidation after 33 years of fixing cars.
However, the business will live on under new ownership.
The company, founded in 1982 by Nelson and Margaret Marshall was handed over to son Nick in 2009. In 2006 it was reported Marshall Transmissions was a multi-million dollar operation, with about 30 staff, many of whom had been with the business some 20 years.
Marshall Transmissions was known for its investment in cutting-edge technology, customer service, and the slogan ‘‘Marshall Transmissions, the transmission magicians’’.
Both Nelson Marshall and son Nick were known for their passion for cars, competing in the London to Sydney Marathon Rally in 2004.
Liquidator Kim S Thompson stated in his first report that the company has ‘‘had cash flow problems for some time’’, and said steps to stabilise it included the injection of Nelson Marshall’s personal funds.
The business was then placed on the market and sold. However, the sale did not cover $310,000 of debt, owed to 94 unsecured creditors. A further $90,000 is owed in GST, PAYE and employee wages and holiday pay.
Thompson said a review of the sale had established it ‘‘appeared to be fair market value given the circumstances.’’
However, he said there were some questions over two transactions that may have occurred while Marshall Transmissions was insolvent.
Thompson was still working to clarify this, and said he would be taking legal advice should insolvent transactions be confirmed. He did not expect the liquidation to be completed in the next six months.
Thompson’s report laid out $80,000 worth of debt owed to Marshall Transmissions, which he would work to recover for creditors over the coming months.
Meanwhile, Dustin Phillips and David Waine, who bought the business and transferred it to Marshall Transmissions (20015), will carry it on under the same name.
Phillips said ‘‘40 years of being batted around’’ meant the brand had market penetration, and the pair were initially unaware the original company would go into liquidation. Phillips said the plan is to return the business to its former glory, growing staff numbers up from 10 and restoring a focus on customer service.