STEVE ABSOLOM and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies, which together operate a total of 13 new and approved used car dealerships across the Thames Valley region.
Headquartered in Basingstoke and with sites in Newbury and Reading, the companies operate dealerships for a number of vehicle manufacturers, including Ford, Peugeot, Citroen, Suzuki, Kia, Honda, Seat and Skoda, in addition to operating the PX Centre in Basingstoke, which specialises in the sale of used cars.
Last week, following a prolonged period of poor trading, the company closed several of its dealerships. Following the appointment of administrators, a total of 267 of the company’s employees were made redundant. The joint administrators have retained 19 members of staff to assist them in the winding down of operations.
Steve Absolom, joint administrator and director at KPMG, commented: “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. 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.”
Will Wright, joint administrator and KPMG partner, added: “Over the coming days, our principal focus is on supporting employees with their redundancy claims and working with the vehicle manufacturers to effect an orderly closure of the business.”
He added: “We are aware that there are a number of customers who will be affected by this administration. While steps have already been taken to contact many of them, any customers who have immediate concerns should contact the following dedicated email address: email@example.com.”
Three new partners and seven business restructuring advisers have been appointed to the new Preston office
Political and economic uncertainty behind the fall in confidence
Just Racing Services, operating company of the Manor Racing Formula One team has entered administration
Last year 16 oil and gas companies became insolvent, finds Top Ten firm Moore Stephens