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A commercial vehicles firm which was part of the failed Garenne Group has gone into liquidation in Guernsey - but the business's Jersey arm currently remains afloat.
Rabeys follows building contractor Camerons, which was also part of the group, into administration.
However, the business's Jersey arm - Rabeys Universal Limited, which trades as Rabeys Commercial Vehicles from its base at Five Oaks - has not gone into liquidation and the company’s directors are currently talking with potential investors.
Most of Rabeys’ 27 staff in Guernsey have been made redundant.
Rabeys Garage Limited – the official name for the company in Guernsey - was established in 1976 and for over 40 years had operated one of the largest vehicle fleet sales and maintenance businesses in the island. It provided services to many of the large fleet and island infrastructure operators, including the States of Guernsey.
Pictured: The Jersey wing of the business is based at Five Oaks.
In a statement, joint liquidators Interpath Advisory and KPMG said: “While the company’s performance had improved in recent years, the impact of recent economic headwinds including major supply chain issues, rising energy and parts prices, coupled with rising interest rates, meant its financial position had declined irretrievably in recent months.
“While a number of avenues were explored by the Board, including holding discussions with potential investors and seeking alternative sources of funding, the only option available in the circumstances was to take steps to cease trading and appoint liquidators.
“Regrettably, the majority of the Company’s 27 employees have been made redundant. A number of employees will be retained by the joint liquidators to assist with certain administrative requirements for a short period of time."
Geoff Jacobs, Managing Director at Interpath Advisory and joint liquidator, said: “It is very disappointing that Rabeys, which has been an important part of the Garenne Group and a long-established Channel Islands business, is no longer able to continue to trade.
“The joint liquidators are committed to ensuring that the optimum outcome for creditors is achieved and supporting the employees at what is a difficult time for all concerned. Any parties who have an interest in the business or its assets should contact the liquidators in early course.”
Linda Johnson, Partner at KPMG in Guernsey and joint liquidator, added: “Rabeys was a significant participant in the local fleet operation and infrastructure and has been an important part of island life in Guernsey and Jersey for many years.
“Our immediate priority will be to assist the employees and creditors to submit their claims in the liquidation.”
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