Fenton motor auction collapses leaving sellers owed cash

A MOTOR auction business has gone into liquidation just three months after opening – leaving dozens of customers out-of-pocket.

Letters have been sent out by Danford Motor Auctions to those with vehicles still on the site in Fenton, with the keys to their cars enclosed.

But some trade and private sellers say they are still owed cash for vehicles which were sold via the firm.

The company had been trading out of a rented warehouse on the Grove Road Industrial Estate.

Richard Tizley, aged 37, from Newcastle, visited the site yesterday to collect cars owned by Lymedale Motors where he works as a buyer.

He said: "We had four of our cars with the auctioneer.

"The first we knew of any problems with the company was when we received the letter in the post.

"We came straight down to see what was going on and to recover our vehicles."

However, Lymedale Motors, based in Liverpool Road, Newcastle, is still waiting for a £2,000 payment from the sale of a Renault Scenic.

Richard said: "There is one car that we are still waiting for payment on which is a couple of grand.

"Our main priority is getting the cars back but it is not a good situation for anybody."

Some customers who had heard of the company's collapse but had not received their car keys resorted to using recovery trucks to collect their vehicles.

Victor Newsome, a salesman for Lymedale Motors, said: "It is going to have a big knock on effect because times are hard.

"Everyone is struggling with the recession and we have money that is still left in there."

Angry garage owners and customers are now demanding answers as to why they weren't warned about the company struggling."

Danfords ran motor auctions on Tuesdays and Fridays.

The letter sent out to customers stated: "We are deeply saddened to say that Danfords Ltd has gone into liquidation.

"Please accept our sincere apologies for any distress caused by this unpleasant occurrence."

A worker for Premier Cars in Sandbach told The Sentinel that he became worried after there was no answer at the office for two days.

He said: "We had been trying to get hold of them to see what was going on.

"But when we got down here, we heard from other car dealers that the company had gone under.

"It's a poor situation and people have lost money."

Michael Gordon, aged 58, who works as a forklift driver at nearby DePe Gear said: "It's a real shame they have closed down because it's not long since they rented the place out.

"People have been hammering on the door trying to find out what's happening."

A private trader, who didn't want to be named, is still waiting for just under £2,000.

He said: "I left two cars here about three weeks ago which both sold, but I haven't had any money.

"They told me it was coming by bank transfer but nothing ever materialised.

"I feel that I have no chance of getting my money back."