EDAM Group, a provider of credit hire and post-accident repair services, has entered administration. Ryan Grant and Rick Harrison of Interpath Advisory have been appointed as Joint Administrators to oversee the affairs of Easi-Drive Ltd, Credit Repair Ltd, and EDAM Group Ltd.

The company, which operates through intermediaries such as insurers, has faced mounting challenges in a volatile market. Structural changes in road traffic volumes following the pandemic led to reduced demand in the credit hire sector. Simultaneously, global supply chain disruptions—exacerbated by the ongoing conflict in Ukraine—caused delays in obtaining vehicle parts and significantly slowed repair times. These issues were compounded by rising operational costs, leaving the business struggling to maintain profitability.

In its latest annual filing for the year ending 31 March 2023, EDAM Group reported a turnover of £26.5 million, a sharp decline from £36.6 million in the previous year. Losses also widened to £2.8 million, compared to £2.4 million in the prior year, reflecting the increasingly difficult trading environment.

At the time of administration, EDAM Group employed 195 staff across its headquarters in Manchester, a support office in Sunderland, and depots in Falkirk, Bristol, Hitchin, and Horsham. As part of the administration process, 101 employees were made redundant, while the remaining staff have been temporarily retained to assist the Joint Administrators with winding down operations.

Despite efforts by the EDAM board to explore options including a potential sale, investment, refinancing, or restructuring, no viable solution could be found. As a result, the company ceased taking on new credit hire and repair service engagements. However, existing customers remain unaffected, with ongoing services continuing under the current terms and conditions.

This situation highlights the broader pressures facing the credit hire industry, including significant shifts in the market and operational challenges across the UK garage network. The decision to wind down operations reflects the systemic difficulties faced by businesses reliant on stable supply chains and consistent demand.

Notably, Garvins Law, EDAM Group’s credit hire litigation specialist, is not impacted by the administration. The firm remains independent and continues to trade as normal.