AA buys bankrupt BSM
Administrator PricewaterhouseCoopers said the sale would preserve the 100-year-old BSM brand, safeguard 2,400 jobs and allow 30,000 customers to carry on taking their lessons.
According to reports, the driving school has struggled since a £10 million management buyout in November 2009 led by joint managing directors Abu-Haris Shafi and Nikolai Kesting.
Matthew Hammond, joint administrator and partner at PwC, said: ‘We are very pleased to have been able to complete a sale of the BSM business. January has been an intensive period of activity as we worked with BSM to explore the options available. The sale preserves the BSM brand and its 100-year history, and secures the immediate transfer of employees, driver franchisees, trainees and student drivers to a large, stable and successful company.’
BSM is understood to have appointed PwC to advise it on a sale before it was bought immediately after entering administration.
The AA is likely to have paid only a nominal sum for the business, according to newspaper reports.
BSM has 2,100 franchised driving instructors across the UK, 135 employees at the head office in Bristol and a further 145 employees at 71 network centres across the UK.
Its operations will continue without interruption and its employees will transfer over to the new company, while the recent deal to bring the Corsa back on its fleet will go ahead, Vauxhall said.