RC Developments go Bust...
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From: Frustration
RC Developments go Bust...
Originally Posted by RC Developments
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.
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.
Apparently this guy got told he was waiting for parts to arrive.
They'd only gone and stripped it to make a test vehicle!!
He's got his car back but its a shell with no engine or exhaust.
Before:
After:
Full thread here:
http://www.lancerregister.com/showthread.php?t=227297
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From: The Middle of Nowhere
It's all Danny's fault apparantly
Nothing to do with the other majority shareholders at all
They are 100% as culpable and responisbile IMO. When you are running a company, ignorance is no excuse so these guys really want to take it on the chin rather than whining about Danny
Sure Danny furked them but they should have been keeping a closer eye on it
Nothing to do with the other majority shareholders at all
They are 100% as culpable and responisbile IMO. When you are running a company, ignorance is no excuse so these guys really want to take it on the chin rather than whining about Danny
Sure Danny furked them but they should have been keeping a closer eye on it
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From: Hampshire
Originally Posted by C7BLE,Oct 21 2008, 04:39 PM
It's all Danny's fault apparantly
Nothing to do with the other majority shareholders at all
They are 100% as culpable and responisbile IMO. When you are running a company, ignorance is no excuse so these guys really want to take it on the chin rather than whining about Danny
Sure Danny furked them but they should have been keeping a closer eye on it
Nothing to do with the other majority shareholders at all
They are 100% as culpable and responisbile IMO. When you are running a company, ignorance is no excuse so these guys really want to take it on the chin rather than whining about Danny
Sure Danny furked them but they should have been keeping a closer eye on it
Where were the audits? Sounds like these chimps were playing at being businessmen.
Danny sounds like a right t@sser but they've made some bold and potentially libellous statements in there. Hope they can back it all up when the sh!t hits the fan.
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From: omnipresent
Originally Posted by R2MUL,Oct 22 2008, 05:23 AM
Where were the audits? Sounds like these chimps were playing at being businessmen.
This story has echoes of a friend of mine. Succesful company ran with a few "pals",
Joined: Aug 2008
Posts: 3,087
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From: In the gutter
A conspiracy theory for you:
Directors seek investment for thier company, and give said investor a directorship. One of the existing directors starts a new company and decides he wants the investor in the original company out so he can have the business, but the new investor/director won't budge.
Said new director goes on Honeymoon and gives the other two enough time to get him out, close the business and get all the equipment on the cheap from the liquidators. Also in the process they make accusations of false accounting and fraudulent behaviou to prevent the other guy mounting a challenge to what's going on. They are also still liable for the lease on the premesis so it would make sense if they move in there also.
I have to admit that I'd never heard or RC and so don't know any of those involved, and that the above is just wild speculation from reading between the lines
Directors seek investment for thier company, and give said investor a directorship. One of the existing directors starts a new company and decides he wants the investor in the original company out so he can have the business, but the new investor/director won't budge.
Said new director goes on Honeymoon and gives the other two enough time to get him out, close the business and get all the equipment on the cheap from the liquidators. Also in the process they make accusations of false accounting and fraudulent behaviou to prevent the other guy mounting a challenge to what's going on. They are also still liable for the lease on the premesis so it would make sense if they move in there also.
I have to admit that I'd never heard or RC and so don't know any of those involved, and that the above is just wild speculation from reading between the lines
