ADMINISTRATORS are still working on the case of a motorcycle dealership which went out of business owing more than £1.8million.

Three Cross Motorcycles was already losing money and had made redundancies before the Covid crisis but the pandemic ended hopes of rescuing it.

The joint administrators dealing with the case have already said unsecured creditors are unlikely to see any money.

They said their work in the case of the Three Legged Cross business would continue until its pension scheme and tax affairs had been finalised.

In previous reports, joint administrators David Taylor and Gareth Roberts of KRE Corporate Recovery told how the business once turned over more than £25m a year and employed 92 people.

But it saw demand sump after cheap Chinese scooters arrived in the UK, with sales dropping by 20-30 per cent a year.

It made redundancies in 2019 and set a budget to return to profit. But the first Covid lockdown scuppered the recovery plan and 23 people lost their jobs when administrators were appointed in May 2020.

The company still has new and used bikes which were funded by DF Finance and are valued at £464,456 in its records

But the report said: “DF Finance are owed c£430,000 and it is unlikely that, after resale, there will be any surplus for the benefit of the administration.”

Administrators found the company’s records “had a number of errors with regards to stocking”.

It was believed bikes, parts, clothing and accessories would raise £54,221.

However, £179,146 has already been raised, with the sale of more motorbikes expected to fetch another £10,000.

The administrators repeated that unsecured creditors were unlikely to see any money.

“Unsecured claims were estimated at £1,804,459 in the director’s estimated statement of affairs,” they wrote.

“It is not anticipated that a dividend will be paid to unsecured creditors.”

Three Cross Motorcycles was founded in 1978 and was bought in 1980 by Keith Davies, whose family remained the only shareholders.