Published: 22nd September 2016
The company behind a chain of car dealerships which incorporated 12 showrooms in southern England has called in administrators after succumbing to a financial crisis.
City Motor Holdings’ businesses are now set to undergo a period of winding down with their parent company having entered administration.
A total of 267 people are expected to lose their jobs in the coming days and weeks as a result of the situation.
Several sites operated by the company have been closing down in recent weeks, with the prospect of administration apparently having loomed large for some time.
A small number of staff are likely to be kept on as KPMG’s administrators continue the process of winding down City Motor’s businesses across the Thames Valley.
A “sustained period of poor trading” is cited as having brought about the financial difficulties faced by the company, which has previously reported annual turnover figures worth tens of millions of pounds.
“While industry figures indicate that the number of new car registrations in the UK has remained consistently high over the last two years, the number of nearly-new and used cars also coming to market has put pressure on motor dealerships around the country,” explained Steve Absolom, one of the appointed administrators.
“Against this backdrop and after a sustained period of poor trading, the directors of City Motors Holdings took the difficult decision to close its operations and call for the appointment of administrators.”
Another of the appointed administrators Will Wright explained that the primary focus for now will be on working through the details of redundancy claims from ex-employees and tying up loose ends with vehicle manufacturers as relevant.
Most of the dealerships being closed are located in Basingstoke, with two others in Reading and a further three based in Newbury.
Vehicle manufacturers with which City Motor Holdings has been working since it was created through a management buyout in 2012 include Ford, Peugeot, Seat, Citroen, Honda, Suzuki and Skoda.
Administrators have said that they are aware that some customers are likely to have been impacted by City Motor’s entry into administration and efforts are being made to resolve any resulting issues in due course. Real Business Rescue provide director advice online, over the phone, or in-person at one of our 78 UK offices or a place of your convenience.