A major British car dealership has 16 final sites and is cutting many jobs.
The blow to CarStore comes just a few months after it bought through the U. S. company Lithia.
In a statement, the company, which also runs Evans Halshaw and Stratstone, said the decision was made to focus on the other two industry giants.
The news left some 300 workers with the hard truth that they had been laid off.
While 16 outlets will be closed, 4 CarStore sites will be retained and re-franchised.
Meanwhile, seven CarStore modules will be at Evans Halshaw Direct locations.
Lithia bosses said: “The company is going to cut around 250 jobs across the UK.
“The vast majority of the losses will come from the closure of 16 CarStore locations, adding seven warehouse-sized showrooms, which are expected to reduce the burden of promoting used models through economies of scale. “
It is understood that consumers will be contacted in relation to closures affecting them.
In the past, all three car suppliers were owned by Pendragon, which agreed to sell them to Lithia in September last year.
In a £250 million deal, Pendragon CarStore, Evans Halshaw and Stratstone.
Evans Halshaw is a racer for 10 brands: Citroën, Dacia, DS, Ford, Hyundai, Kia, Nissan, Peugeot, Renault and Vauxhall.
Aston Martin, BMW, BYD, Ferrari, Genesis, Jaguar, Land Rover, Mercedes-Benz, Mini, Porsche and Smart handle.
Pendragon also announced that it has partnered to deploy its broker control software arm, called Pinewood, at all 50 of Lithia’s UK locations and enter the North American market.
The deal with Lithia, which has about 340 distributors in North America, will allow Pinewood’s software to unlock the North American market and target global expansion, he said.
Pendragon shares jumped 25% following the deal, valuing the entire company at £322 million at the time.
Pendragon was approached through Swedish carmaker Hedin Group in September 2022 with a potential acquisition worth £400 million, or 29 pence per share, but it did not result in a sale.
Andres Hedin, owner of the Hedin Group, owned more than a quarter of Pendragon’s shares.
However, a month after the Lithia deal, Hedin and the US company PAG International showed that they had renounced any ties with the company.
©News Group Newspapers Limited in England No. 679215 Registered Office: 1 London Bridge Street, London, SE1 9GF. “The Sun”, “Sun”, “Sun Online” are registered trade marks or trade names of News Group Newspapers Limited. This service is provided under News Group Newspapers’ Limited’s popular terms and situations in accordance with our Privacy & Cookie Policy. To inquire about a license to reproduce material, please visit our distribution site. Check out our online press kit. For other requests, please contact us. To view all of The Sun’s content, please use the site map. Sun’s website is regulated through the Independent Press Standards Organization (IPSO).
Our hounds try to be precise, but we make mistakes. For more main points about our complaints policy and to register a complaint, please click on this link: thesun. co. uk/editorial-complaints/