Car dealer Kenny Galway goes into receivership

West of Ireland car dealership Kenny Galway has gone into receivership. Founded in 1992 by Brian Kenny, it operated from premises on the Tuam Road, Galway and held franchises for Citroen, Volvo, Kia and Peugeot.

In a statement on its website, Brian Kenny said: "It is with regret that Kenny Galway is going into receivership after 25 years of successful trading." It attributed the receivership to the transfer of property loans to Sankaty Advisers, a US-based affiliate of investment group Bain Capital. Sankaty purchased a portfolio of loans from Ulster Bank last year.

Recent accounts

The most recent accounts for Kenny Galway Ltd show an operating profit of €318,415 for the year ended December 31st, 2014, up from €58,635 the previous year. The accounts record the firm as having 25 employees.

Kia Motors Ireland managing director James Brooks said he was saddened by the news and the receivership "wasn't related to motor trading issues".

According to a statement from Volvo, it is working with Mr Kenny “who has stated that he will look after his customers where possible, and that he is looking for a new premises”.

Established in 1992, with Citroen and Volvo franchises, Kenny Galway relocated in 2003 to a new building on the Tuam road, Galway. It became a Kia dealer in 2007 and a Peugeot dealer in October 2014.

It leaves all four car brands with significant gaps in their market coverage in the west of Ireland during what is normally the peak period for new car orders in the run-up to January.