26.04.2009

Trojan appoints Union Power

Trojan batteries has appointed Union Power Systems as its new master distributor/importer for the UK, following the failure of Energy Batteries.

Union Power is a sister company of automotive battery supplier, UK Batteries and will operate from the same Corby distribution depot that served as the headquarters for Energy Batteries which went into administration in February.

Union Power has re-employed the same management team that handled the Trojan product line at Energy. It has also appointed Nigel Rodgers, previously national accounts and business development director at LSUK – Trojan’s largest sub-dealer, as sales director.
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Nigel Rodgers

Rodgers said: “This new distribution agreement is a significant development for Trojan and the industrial sector as a whole. Like its sister company UK Batteries, Union Power Systems will operate to the same slick distribution and customer service platform, as well as working to the same strict stock availability criteria that ensures customers have access to the range of products they want.”

“Our objective for Union Power Systems is simple: we want to establish ourselves as the largest distributor of battery products in the industrial sector. And with the knowledge and experience of the 12-strong management team we have in place to oversee the development of the Trojan brand in the UK, I firmly believe that is an achievable target.”

Vertikal Comment

Energy Batteries was caught with a £400,000 bad debt when LSUK – Lucas service centres – went into administration. The effect was to cause severe cash flow issues with the business. The owners were prepared to put more capital into the business as long as their bank agreed to continue with its level of funding, it refused leaving the business with no choice but to call in the administrators.

KPMG was appointed in mid February and quickly decided that it was not viable to trade out of the situation and after attempting to sell the business outright laid off most of the staff and conducted an assets sale. It now believes that there will be a £3.8 million shortfall in the business so unsecured creditors will get nothing.