Carcraft closure: 500 jobs to go at second-hand car dealer
The second-hand car company Carcraft is to close, with the loss of about 500 jobs.
The dealership, based in Rochdale, Greater Manchester, has 10 showrooms around the country.
Carcraft is the UK's seventh-largest second-hand car chain, selling more than 12,000 used vehicles a year, administrators said.
A spokesman warned customers with Carcraft policies, including break-down cover, would no longer be covered.
Administrators Grant Thornton said the group had suffered from "poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet".
Carcraft, which was established in 1951, has sites in:
- Sheffield, South Yorkshire
- Leeds, West Yorkshire
- Enfield, London
- Stretford, Greater Manchester
- Newport, South Wales
- Birtley, Gateshead
- Wednesbury, West Midlands
- Lakeside, Essex
- Chertsey, Surrey
The group is said to be making annual losses of about £8m a year.
It is understood all employees have been informed and have been made redundant.
Daniel Smith, partner at Grant Thornton, said: "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."
He added the business would retain a "skeleton staff" to help with selling off the assets.