RC Developments

Evo · Post by **Evo** » Tue Oct 21, 2008 9:59 pm

Update on the MLR from RC Developments -

As of Monday the 20th of October 2008, it is with great sadness, for us to announce the closure of RC Developments UK LTD, with the company entering into receivership.

We are very sorry to declare this, even more sorry to pass this news to our close supporters, fans and friends who have supported RC Developments over the years. We thank you all for your 8 Years of support, and happy memories.

The reason for the closure is a shock to everyone here at RC Developments, and also we imagine to a large majority involved in the Performance Sports Car Sector.

Please allow us to surmise the situation, and explain to all the recent series of events that have lead to the downfall of RC Developments, widely respected by many as one of the leaders in innovation and success in the Mitsubishi tuning world.

2005 saw RC Developments rapidly expand as a company, brought about by the publicity of the company's successful Motorsport participation and continuing high class level of support for its customer base. This expansion required an addition to the company to handle managerial responsibilities, including office day to day running & finance control, and also overseeing the Motorsport Program at RC Developments, including securing sponsorship deals, and parts ordering.

Danny O'Hara bought into RC Developments 3 years ago, with 19% share of the company, and was made Managing Director for RC Developments. During this period of expansion and development of the company, Co-Founder of RC Developments, Max Waung, resigned as director from RC, to devote more time
to concentrate on his own business; Car Planet.

A great deal of trust was placed in Danny O'Hara, by Clive Seddon and Max Waung, to handle the business properly, and keep all accounts in good stead. Danny was made solely responsible for all financial matters, including liaising with the accountant who was contracted to handle such Tax matters.

Unfortunately for the company, this trust was misplaced. Around 6 weeks ago, Danny got married and took a week away from work to go on his honeymoon. During this period of time, a number of problems surfaced without Danny there to hide them. It was at this point that Clive and Max began to investigate the problems, and there was no doubt at the time, that there were a number of grounds of misconduct that Danny was proven to have been guilty of. The web of lies and deceit unfolded, and Danny was then released from his position as director, as mentioned in a previous thread.

There are a number of serious matters surrounding Danny's activities (some fraudulent) at the company that are still currently being investigated, to which we are not able to pass further comment, but have proven to be absolutely detrimental to the company. The web of lies Danny has been able to mastermind has caused the finances at RC Developments to reach a point of no return. 5 weeks ago, after Danny's dismissal, all at RC Developments tried to claw back finances to keep RC Developments open, by way of selling as much old and current stock, in order to keep the bank satisfied, to pay back suppliers owed vast amounts on accounts (that Danny had told us he had settled), and also back to the customers who Danny had taken money from (some of whom had placed large amounts of cash deposits with Danny).

However, the damage Danny has incurred on the company by way of his incompetence (including 3 CCJ's) has been too great of challenge to face, and despite our best efforts, the bank have made the decision to withdraw the overdraft facility and order all funds to be paid back to restore the company account (of which Clive Seddon and Max Waung are guarantors of)

With no other decision to be made, it is therefore with our deep sadness to announce the closure of RC Developments. The company has gone into receivership, with the liquidator appointed, who will assess the company and issue a creditors list.

As a result, Max has offered temporary employment to some of the employees of RC Developments, including Clive Seddon, in order to attempt to establish a Performance Tuning Sector within Car Planet, to offer Car Planet customers bespoke Motorsport and fast road preparation services.

Max has agreed with the liquidator to buy back equipment from RC Developments in order to reduce the debt, including the Ramps and Tooling. In addition to this, Max has also taken over the lease for the Rolling Road, of which Clive is guarantor. The directors of RC Developments remain responsible for the lease at the RC Developments premises for another 3 years.

With that said, all at RC Developments would like to thank each and every one of its customers, who over the 8 years of trading, have all been a pleasure to serve. We are very sorry for not being able to fight this monumental challenge, and very sorry for the community for our inability to now provide our services. Thankyou to the M.L.R and its members for all of your support. Thankyou to all of the people who have well wished all of the individuals who have built RC Developments over the years. So long and thanks for the memories.

Post by **Ben** » Tue Oct 21, 2008 10:09 pm

What a saga !!

RX7 · Post by **RX7** » Wed Oct 22, 2008 6:30 am

Shieet so are they putting it all down to Danny ?!!!? Doesnt sound like it was particularly well business if they didnt know what Danny was doing at the time.

Very sad for Evo people though.

Gerry H · Post by **Gerry H** » Wed Oct 22, 2008 7:48 am

"So long and thanks for the memories" is a somewhat glib comment when the business folds owing money to suppliers and customers whose money was placed in good faith.

Doesn't say much for the accountant :roll:

Rob_B · Post by **Rob_B** » Wed Oct 22, 2008 8:03 am

all sounds rather dodge to me - not the sort of company i'd want to deal with

Post by **Stuart** » Wed Oct 22, 2008 8:35 am

I wonder if Danny will post.

blackskygtr · Post by **blackskygtr** » Wed Oct 22, 2008 9:23 am

Having now followed the thread end to end I really cant see that it is all down to one man!!!!!!
There have been some shocking examples of the work being done and Theft from the customers vehicles including engines and gearboxes

There is soooooooooo much going on behind this i beleive.
Its a classic example of a business getting too big and cocky. General concensus seems to be Car planet have tried to salvage some of the business and resurect the tuning efforts but i feel it will be a long time before evo owners will trust any of those involved. Very sad for all those owed by them. Must have been gauling to see the RC cars in time attack etc knowing they were owed so much. Poor display of how to run a business IMHO

IWANT1 · Post by **IWANT1** » Wed Oct 22, 2008 10:26 am

Still amazes me why someone would let a company carry on with a build if you had found so much out about them while going to visit during the build why not pull the plug then and walk away, plenty of top tuners around doing a

blacky · Post by **blacky** » Wed Oct 22, 2008 12:16 pm

Easy to say in hindsight, and it not being your build etc...

IWANT1 · Post by **IWANT1** » Wed Oct 22, 2008 12:38 pm

blacky wrote:Easy to say in hindsight, and it not being your build etc...

Not at all .

Obviously RC had nowhere to go and Danny at that point broke down in tears and admitted that there were no gearboxes and that he had indeed stolen and sold the engine, gearbox and other parts from the car.

If you got home from work as your missis was getting a good seeing to from a mate would you ask to watch/or even bend over yourself. I dont think so

So if you have been told that your gear had been stolen why would you carry on going back for more work?