The London based executive chauffeur driven car service, Brookes, is in serious financial trouble after accumulating £300,000 in debts, half of which is owed to the Inland Revenue. In a bid to save the business, bosses have filed for a company voluntary agreement (CVA) which enables the debts to be paid off over an agreed time period.
Brookes Chauffeur Services is 80% owned by retail entrepreneur Kevin Stanford who only two years ago, was worth an estimated £220 million. Stanford first made his fortune when he went into business with his first wife Karen Millen and created the retail chain of women’s wear of the same name. He has also owned stakes in House of Fraser and more recently, Ghost and Mosaic which have both gone into administration this year.
The catalyst for Stanford’s downward spiral came after he lost much of his wealth following the collapse of the Icelandic bank Kaupthing. It was revealed recently that Stanford was in fact the fourth biggest investor in the fallen bank.
As well as owing a large amount to the taxman, Brookes has also run up debts with the accountant firm Dandy Neville and Hermes Investment Bank. It is hoped the CVA scheme will enable the floundering chauffeur company to get back up on its feet. Although the debts are considerable, they’re not impossible. With an accomplished businessman such as Stanford at the helm, there’s still hope for Brookes Chauffeur Services.