The administrators who saved a motor repair chain from collapse, after it was hit by a lack of trade during the pandemic, have appointed CAPA to audit sites where the business traded to recover further funds.

Begbies Traynor rescued Crossleys Accident Repair Centre earlier in 2022 by managing a sale of the business to a connected third party. The process involved a pre-pack administration that saved more than 70 jobs at the firm.

After it began trading in 1997 in the north west of England, the auto repair specialist developed into a successful business, reporting profits in the accounts every year up until 2020, when the pandemic took hold.

But in 2020 the business saw trading volumes drop by around 65% and this problem was exacerbated by the fact the north west region endured longer lockdown periods. Coming out of the pandemic, Crossleys was affected by other long-term economic effects, when it had to buy parts up front when parts suppliers reduced previously agreed credit limits.

In the end Gary Lee and Paul Stanley of Begbies Traynor were appointed as administrators in February 2022, but they managed to save the company by orchestrating the sale of the business immediately upon their appointment.

They have now instructed CAPA, meaning CAPA’s audit team will use bespoke software to carry out forensic inspections of sums paid out to local authorities at five locations Crossleys traded from across the north west.

The team will look to identify anomalies or errors, before recovering any overspend, thereby boosting the overall returns to creditors of Crossleys, on a no-win, no-fee basis.