ADMINISTRATORS from Grant Thornton have been appointed to second-hand car dealer Carcraft.
The Rochdale-based car ‘supermarket’ has been a popular port of call for many motorists to pick up bargain cars, selling 12,00 used vehicles a year and with ten sites including Lakeside, Leeds, Sheffield and Newport.
Despite turning over £120m annually, it has suffered from “poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet”, all of which have hindered investment, Grant Thornton said.
It has made annual £8m losses for several years.
Grant Thornton’s Daniel Smith and Joe McLean have been appointed as administrators.
Attempts to sell the business since February have failed, and has subsequently ceased trading with the loss of 500 jobs, practically all staff. Employees were paid up until the end of April.
Customers with warranty and roadside assistance products will no longer be covered, administrators said.
Smith commented: “With great regret a conclusion was reached that it is no longer viable to keep Carcraft in operation. In order to prevent further losses it has been agreed with management and creditors to cease operations with immediate effect.”
A skeleton staff will be kept on to help realise assets.
“In the event there are any approaches from interested parties post appointment we will react to these accordingly. It is our intention to explore with an alternative provider whether they could provide the roadside assistance element of the DHP cover at a favourable rate to former customers,” Smith added.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children