A credit hire claims firm from Manchester has said it remains solvent and in operation despite its parent company going into administration.
Manchester-based Garvins Law is a credit hire litigation specialist and was a member of the EDAM Group, a post-accident management company which also owned an insurance and credit hire business.
EDAM’s website states that the company appointed joint administrators to handle its affairs on Monday, along with the affairs of sister companies Easi-Drive Limited and Credit Repair Limited.
Ryan Grant and Rick Harrison from insolvency practice Interpath Advisory have been appointed to manage the administration and creditors are being contacted this week with an update on the position.
The Garvins Law website is still live: immediately after Monday's statement its ‘get in touch’ function directed inquiries to the EDAM administration statement. That link now invites inquirers to email a generic address for the firm.
Neil Garvin, director at Garvins Law, said the firm remains a 'solvent and thriving business' which has traded successfully since 2016.
He added: 'Garvins Law Limited remains fully operational and continues to serve its clients with the same dedication and professionalism that has defined our firm for years. Our immediate focus is in relation to collecting debts under the term of the administration.
'We are actively pursuing exciting opportunities in our specialist area of credit hire litigation and are committed to providing the highest quality of service.'
A letter from the EDAM Group administrators, seen by the Gazette, revealed they have appointed Garvins to act in recovering outstanding debts which can be put back into the administration.
According to accounts for the year to March 2023, Garvins Law recorded a post-tax loss of £272,000. This was on top of a £65,000 loss the previous year. It employed 24 people as of March 2023.
Following the passing of the Civil Liability Act in May 2021, directors decided to wind down the personal injury side of the business and become a niche litigation practice dealing with credit hire claims principally on behalf of EDAM Group. Turnover dropped by 12% to £1.075m in the year that followed.
In the same 2022/23 year, the EDAM Group reported losses of £2.8m, up from £2.4m the previous year.
The company’s annual report stated that it had significantly reduced the volume of credit repair cases it managed and exited partnerships with bodyshop businesses and claims management companies. This had led to turnover falling by 28% in the year to £26.5m.
Directors said in March 2024 when the accounts were published that a number of new business partners from target markets had been brought on board, and this growth was expected to continue into 204/25 and beyond. In total the group had 313 staff, although headcount had fallen by more than 60 to cut cost.
