UNSECURED creditors of a motorcycle dealership which went into administration owing £1.8million are unlikely to see any money.

Three Cross Motorcycles was losing money and had made redundancies when the first Covid lockdown put paid to hopes of a turnaround.

The business at Three Legged Cross owed £1.43m to trade creditors and £95,181 to HMRC.

The latest update from administrators says: “It is not anticipated that a dividend will be paid to unsecured creditors."

Three Cross Motorcycles goes into administration after coronavirus lockdown

Previous reports have told how the business, which once turned over more than £25m a year, saw demand slump after the arrival in the UK of cheap Chinese scooters.

It made a round of redundancies earlier this year and set a budget to turn a profit, but the lockdown put it in an “impossible” situation.

The latest report by David Taylor and Gareth Roberts of KRE Corporate Recovery says the company’s records “had a number of errors with regard to stocking”.

It was thought that the company owned cars worth £10,000, used bikes and parts worth £39,221 and clothing and accessories worth £5,000. However, a “detailed review and investigations” by the joint administrators had identified other assets.

So far, items worth £160,332 had been sold, while the sale of motorcycles, parts and a company van are expected to raise £22,700.

Lloyds Commercial Finance was owed £45,517 and has been repaid from debts collected.

Three Cross Motorcycles had liabilities of £1.8m when it went into administration

Bikes worth around £560,000 were financed by Wells Fargo and have been returned to the lender, while DF Finance had funded new and used bikes worth £464,456.

Staff owed a total of £71,377 in holiday pay and wages are deemed ‘preferential’ creditors and the administrators expect there will be money for them.

Twenty-three staff at Three Cross Motorcycles were made redundant when administrators were appointed in May.

The joint administrators said afterwards that the lack of working capital and the enforced closure during the first lockdown made it impossible to restructure the business. No buyer was found to take it on as a going concern.

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

It had 92 staff at its peak, selling 12,000 bikes in 2005.