RC Developments has gone under
23 October 2008, 12:42 PM
#1
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RC Developments has gone under
surprised this hasn't been posted before (unless i missed the thread?). but RC developments has gone bust
RC Developments in liquidation - Mitsubishi Lancer Register Forum
RC Developments in liquidation - Mitsubishi Lancer Register Forum
23 October 2008, 12:48 PM
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Sure i saw one of their cars for sale on Pistonheads a few weeks back?
Edit - Said car
Mitsubishi : RC Developments 700hp Blue Evo 6
Edit - Said car
Mitsubishi : RC Developments 700hp Blue Evo 6
Last edited by RMA26; 23 October 2008 at 12:51 PM.
23 October 2008, 01:06 PM
#3
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yeah mate, they have been selling assests for the past month or so to try to get enough cash to keep bank at bay, they have failed and have gone., hang on i'll post the quote up from the rc guys, page 18 on the thread.
As of Monday the 20th of October 2008, it is with great sadness, for us to announce the closure of RC Developments UK LTD, with the company entering into receivership.
We are very sorry to declare this, even more sorry to pass this news to our close supporters, fans and friends who have supported RC Developments over the years. We thank you all for your 8 Years of support, and happy memories.
The reason for the closure is a shock to everyone here at RC Developments, and also we imagine to a large majority involved in the Performance Sports Car Sector.
Please allow us to surmise the situation, and explain to all the recent series of events that have lead to the downfall of RC Developments, widely respected by many as one of the leaders in innovation and success in the Mitsubishi tuning world.
2005 saw RC Developments rapidly expand as a company, brought about by the publicity of the company's successful Motorsport participation and continuing high class level of support for its customer base. This expansion required an addition to the company to handle managerial responsibilities, including office day to day running & finance control, and also overseeing the Motorsport Program at RC Developments, including securing sponsorship deals, and parts ordering.
Danny O'Hara bought into RC Developments 3 years ago, with 19% share of the company, and was made Managing Director for RC Developments. During this period of expansion and development of the company, Co-Founder of RC Developments, Max Waung, resigned as director from RC, to devote more time
to concentrate on his own business; Car Planet.
A great deal of trust was placed in Danny O'Hara, by Clive Seddon and Max Waung, to handle the business properly, and keep all accounts in good stead. Danny was made solely responsible for all financial matters, including liaising with the accountant who was contracted to handle such Tax matters.
Unfortunately for the company, this trust was misplaced. Around 6 weeks ago, Danny got married and took a week away from work to go on his honeymoon. During this period of time, a number of problems surfaced without Danny there to hide them. It was at this point that Clive and Max began to investigate the problems, and there was no doubt at the time, that there were a number of grounds of misconduct that Danny was proven to have been guilty of. The web of lies and deceit unfolded, and Danny was then released from his position as director, as mentioned in a previous thread.
There are a number of serious matters surrounding Danny's activities (some fraudulent) at the company that are still currently being investigated, to which we are not able to pass further comment, but have proven to be absolutely detrimental to the company. The web of lies Danny has been able to mastermind has caused the finances at RC Developments to reach a point of no return. 5 weeks ago, after Danny's dismissal, all at RC Developments tried to claw back finances to keep RC Developments open, by way of selling as much old and current stock, in order to keep the bank satisfied, to pay back suppliers owed vast amounts on accounts (that Danny had told us he had settled), and also back to the customers who Danny had taken money from (some of whom had placed large amounts of cash deposits with Danny).
However, the damage Danny has incurred on the company by way of his incompetence (including 3 CCJ's) has been too great of challenge to face, and despite our best efforts, the bank have made the decision to withdraw the overdraft facility and order all funds to be paid back to restore the company account (of which Clive Seddon and Max Waung are guarantors of)
With no other decision to be made, it is therefore with our deep sadness to announce the closure of RC Developments. The company has gone into receivership, with the liquidator appointed, who will assess the company and issue a creditors list.
As a result, Max has offered temporary employment to some of the employees of RC Developments, including Clive Seddon, in order to attempt to establish a Performance Tuning Sector within Car Planet, to offer Car Planet customers bespoke Motorsport and fast road preparation services.
Max has agreed with the liquidator to buy back equipment from RC Developments in order to reduce the debt, including the Ramps and Tooling. In addition to this, Max has also taken over the lease for the Rolling Road, of which Clive is guarantor. The directors of RC Developments remain responsible for the lease at the RC Developments premises for another 3 years.
With that said, all at RC Developments would like to thank each and every one of its customers, who over the 8 years of trading, have all been a pleasure to serve. We are very sorry for not being able to fight this monumental challenge, and very sorry for the community for our inability to now provide our services. Thankyou to the M.L.R and its members for all of your support. Thankyou to all of the people who have well wished all of the individuals who have built RC Developments over the years. So long and thanks for the memories.
As of Monday the 20th of October 2008, it is with great sadness, for us to announce the closure of RC Developments UK LTD, with the company entering into receivership.
We are very sorry to declare this, even more sorry to pass this news to our close supporters, fans and friends who have supported RC Developments over the years. We thank you all for your 8 Years of support, and happy memories.
The reason for the closure is a shock to everyone here at RC Developments, and also we imagine to a large majority involved in the Performance Sports Car Sector.
Please allow us to surmise the situation, and explain to all the recent series of events that have lead to the downfall of RC Developments, widely respected by many as one of the leaders in innovation and success in the Mitsubishi tuning world.
2005 saw RC Developments rapidly expand as a company, brought about by the publicity of the company's successful Motorsport participation and continuing high class level of support for its customer base. This expansion required an addition to the company to handle managerial responsibilities, including office day to day running & finance control, and also overseeing the Motorsport Program at RC Developments, including securing sponsorship deals, and parts ordering.
Danny O'Hara bought into RC Developments 3 years ago, with 19% share of the company, and was made Managing Director for RC Developments. During this period of expansion and development of the company, Co-Founder of RC Developments, Max Waung, resigned as director from RC, to devote more time
to concentrate on his own business; Car Planet.
A great deal of trust was placed in Danny O'Hara, by Clive Seddon and Max Waung, to handle the business properly, and keep all accounts in good stead. Danny was made solely responsible for all financial matters, including liaising with the accountant who was contracted to handle such Tax matters.
Unfortunately for the company, this trust was misplaced. Around 6 weeks ago, Danny got married and took a week away from work to go on his honeymoon. During this period of time, a number of problems surfaced without Danny there to hide them. It was at this point that Clive and Max began to investigate the problems, and there was no doubt at the time, that there were a number of grounds of misconduct that Danny was proven to have been guilty of. The web of lies and deceit unfolded, and Danny was then released from his position as director, as mentioned in a previous thread.
There are a number of serious matters surrounding Danny's activities (some fraudulent) at the company that are still currently being investigated, to which we are not able to pass further comment, but have proven to be absolutely detrimental to the company. The web of lies Danny has been able to mastermind has caused the finances at RC Developments to reach a point of no return. 5 weeks ago, after Danny's dismissal, all at RC Developments tried to claw back finances to keep RC Developments open, by way of selling as much old and current stock, in order to keep the bank satisfied, to pay back suppliers owed vast amounts on accounts (that Danny had told us he had settled), and also back to the customers who Danny had taken money from (some of whom had placed large amounts of cash deposits with Danny).
However, the damage Danny has incurred on the company by way of his incompetence (including 3 CCJ's) has been too great of challenge to face, and despite our best efforts, the bank have made the decision to withdraw the overdraft facility and order all funds to be paid back to restore the company account (of which Clive Seddon and Max Waung are guarantors of)
With no other decision to be made, it is therefore with our deep sadness to announce the closure of RC Developments. The company has gone into receivership, with the liquidator appointed, who will assess the company and issue a creditors list.
As a result, Max has offered temporary employment to some of the employees of RC Developments, including Clive Seddon, in order to attempt to establish a Performance Tuning Sector within Car Planet, to offer Car Planet customers bespoke Motorsport and fast road preparation services.
Max has agreed with the liquidator to buy back equipment from RC Developments in order to reduce the debt, including the Ramps and Tooling. In addition to this, Max has also taken over the lease for the Rolling Road, of which Clive is guarantor. The directors of RC Developments remain responsible for the lease at the RC Developments premises for another 3 years.
With that said, all at RC Developments would like to thank each and every one of its customers, who over the 8 years of trading, have all been a pleasure to serve. We are very sorry for not being able to fight this monumental challenge, and very sorry for the community for our inability to now provide our services. Thankyou to the M.L.R and its members for all of your support. Thankyou to all of the people who have well wished all of the individuals who have built RC Developments over the years. So long and thanks for the memories.
23 October 2008, 01:08 PM
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Sure i saw one of their cars for sale on Pistonheads a few weeks back?
Edit - Said car
Mitsubishi : RC Developments 700hp Blue Evo 6
Edit - Said car
Mitsubishi : RC Developments 700hp Blue Evo 6
23 October 2008, 01:15 PM
#5
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Learn the lesson people. Never ever expect someone to run YOUR company. Especially when the 2 of them were guarantors.
Bad bad business trusting people with your money.
If you haven't got time to run a business then sell up and walk away.
Sad news.
Chop
Bad bad business trusting people with your money.
If you haven't got time to run a business then sell up and walk away.
Sad news.
Chop
23 October 2008, 01:24 PM
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Best hope no one had their car in for work when they went under. A similar type of company went a few years ago and there were about a dozen customer cars. They were all locked in for weeks till it was all sorted out with the bank.
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23 October 2008, 01:31 PM
#8
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That's an interesting, if rather flawed, statement.
If "Danny" isn't guilty of all that he's been accused of, then whoever wrote it could be in serious trouble.
Bottom line,
The equipment will be bought by Clive and Max for pence in the £, the rolling road lease has been taken over, the premises were leased.
RC Developments (2008) Limited will start up soon enough, either from the existing premises or from Car Planet's premises.
Unless Clive and Max are unable to manage repayment of their personal guarantees.
If all thats written is true, then Clive and Max have made some serious judgement errors. Not forgetting that ALL directors have a fiduciary duty to creditors and the company, not just the managing director. So unless Danny was the sole director, the other remaining directors are just as responsible for what happened.
edit - Accounts to April 2007 lodged in February 2008 saw a doubling in creditors and a reduction in profits to only £2,000 for the year to April 2007. So its somewhat unfair to say that the other directors had no knowledge until now.
If "Danny" isn't guilty of all that he's been accused of, then whoever wrote it could be in serious trouble.
Bottom line,
The equipment will be bought by Clive and Max for pence in the £, the rolling road lease has been taken over, the premises were leased.
RC Developments (2008) Limited will start up soon enough, either from the existing premises or from Car Planet's premises.
Unless Clive and Max are unable to manage repayment of their personal guarantees.
If all thats written is true, then Clive and Max have made some serious judgement errors. Not forgetting that ALL directors have a fiduciary duty to creditors and the company, not just the managing director. So unless Danny was the sole director, the other remaining directors are just as responsible for what happened.
edit - Accounts to April 2007 lodged in February 2008 saw a doubling in creditors and a reduction in profits to only £2,000 for the year to April 2007. So its somewhat unfair to say that the other directors had no knowledge until now.
Last edited by Devildog; 23 October 2008 at 01:50 PM.
23 October 2008, 01:34 PM
#9
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That won't have been the Bank's doing - under those circumstances the liquidator/administrator/receiverer cannot release customer vehicles until proof of ownership is provided and any payments due from customers for the work done have been paid.
23 October 2008, 01:37 PM
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I think its not all Danny's doing tbh - they've been doing some naughty stuff.
check this out!!!
RC Developments in liquidation - Page 28 - Mitsubishi Lancer Register Forum
check this out!!!
RC Developments in liquidation - Page 28 - Mitsubishi Lancer Register Forum
23 October 2008, 01:40 PM
#11
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Well all I can say is if what this lad has done is true then what a c*ck.
I'd PAY someone to do that job. To be involved in the management of something like that would be dream. To read someone abuses and takes the pi55 is shocking.
Hope they make it through.
EDIT - seeing the link by The Cheif I take back some of the above and say ANYONE that abuses and ***** up an enterprise like that pi55es me off.
I'd love to run my own tuning business.
I'd PAY someone to do that job. To be involved in the management of something like that would be dream. To read someone abuses and takes the pi55 is shocking.
Hope they make it through.
EDIT - seeing the link by The Cheif I take back some of the above and say ANYONE that abuses and ***** up an enterprise like that pi55es me off.
I'd love to run my own tuning business.
Last edited by EddScott; 23 October 2008 at 01:50 PM.
23 October 2008, 01:46 PM
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Sounds like it's been completely mismanged by the owners and now blaming someone else.
It's totally YOUR FAULT if you don't know how your company is being run and you don't deserve to have a business.
Are any jap car tuning companies well run? Scoobysport failed, others have too.
Just a bunch of amatuers who enjoy tuning thinking they can turn it into a business when they should have stayed in their garages and concentrated on their own projects.
It's totally YOUR FAULT if you don't know how your company is being run and you don't deserve to have a business.
Are any jap car tuning companies well run? Scoobysport failed, others have too.
Just a bunch of amatuers who enjoy tuning thinking they can turn it into a business when they should have stayed in their garages and concentrated on their own projects.
23 October 2008, 01:50 PM
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23 October 2008, 01:51 PM
#15
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I,ve been keeping track of this, fooking shocking what they,ve ALL done, that one guy who gave them 37k upfront and did you see how they left his car??? he,s now 35k down too..........
23 October 2008, 02:52 PM
#18
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Looking at the RC accounts, there is simply no way that the company was sufficiently well funded or profitable to be able to afford the £'000 spent on its own development cars.
Something, I suspect, that is not restricted to any one marque.
23 October 2008, 03:03 PM
#19
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So excuse my ignorance on a subject like this, BUT the people who,ve lost £££ of there hard earnt, can,t thye get any back at all then?? i mean is there a law against this or not??
23 October 2008, 03:09 PM
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Somebody I know alleged they were having ongoing difficulty getting a 4 figure sum back from RC and as I understood all at RC were aware of the debt, not just this Danny character. This was several months ago. So it seems a bit naive to imagine that the other directors knew nothing of the state of their business.
23 October 2008, 03:21 PM
#21
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Have you seen the pix of that guys car.........
quote: off MLR.
this was 6 this was 6 months before they got it,
http://i166.photobucket.com/albums/u...w/IMGP7038.jpg
this is what i picked up
http://i43.photobucket.com/albums/e3...o/CIMG3681.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3680.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3677.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3678.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3717.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3708.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3696.jpg
http://i43.photobucket.com/albums/e3...o/CIMG3691.jpg
QUOTE:end.
I'd be very upset.
Phil
23 October 2008, 03:23 PM
#23
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bummer, the pix have been removed!
23 October 2008, 03:25 PM
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Best bit of advice on that thread is on what's currently the last page. Take heed, this man talks a lot of sense, and don't just think it applies to car tuners...
In addition to this, this recession is gonna be one hell of a shocker and I think more tuners (not just Mitsubishi) across the board are going to fall by the wayside and god knows what other facts will come out in the wash as these struggling tuners had to take shortcuts to stay afloat - they may already be doing it now so be very careful with who you are spending it with and how its being spent. i.e. Keep on top of them and go over it with a fine tooth comb, even it means acting as a project manager to make sure all costs are accounted for and the work is being done.
23 October 2008, 03:26 PM
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I'm just glad I managed to get the parts they owed me before they went into liquidation. I had to wait for nearly a year, promised loads of times by Danny that they'd be with me any day now always an excuse ready. As soon as I found out Danny had gone, called Clive and got my parts in less than 24 hours (presumably off the shelf!).
Luckily the value was low (hence me being somewhat laissez faire about getting the stuff) but I'd got to the point where I'd prepared papers for the Small Claims Court and was about to serve a 14 day notice of that intent when I found out Danny had been given the boot.
Luckily the value was low (hence me being somewhat laissez faire about getting the stuff) but I'd got to the point where I'd prepared papers for the Small Claims Court and was about to serve a 14 day notice of that intent when I found out Danny had been given the boot.
23 October 2008, 03:28 PM
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Reading all that I would surmise that:-
A) Poor management
B) Fraudulent practices going on (Selling customers parts)
C) Shoddy workmanship. If I was Hull_e8, I'd have been round with a shotgun.
D) Total lack of respect for their customers
Leaving customers stripped cars out in the open to get rusty? WTF?
A lot of blame was originally put on one man, but by the sounds of it everyone had a hand in ******* things up. Car parts don't get stripped and sold off a customers car without more than one person knowing. Like wise fobbing a customer off for months regarding parts on order.
If you're a mechanic and see a car there everyday for months, you'd know parts don't take that long. They all knew.
That's how I read it anyway
A) Poor management
B) Fraudulent practices going on (Selling customers parts)
C) Shoddy workmanship. If I was Hull_e8, I'd have been round with a shotgun.
D) Total lack of respect for their customers
Leaving customers stripped cars out in the open to get rusty? WTF?
A lot of blame was originally put on one man, but by the sounds of it everyone had a hand in ******* things up. Car parts don't get stripped and sold off a customers car without more than one person knowing. Like wise fobbing a customer off for months regarding parts on order.
If you're a mechanic and see a car there everyday for months, you'd know parts don't take that long. They all knew.
That's how I read it anyway
23 October 2008, 03:30 PM
#28
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Pity for the customers who are now going to loose money etc..
Ns04
