(Reuters) – British car stores Pendragon (CEO. L) and Inchcape (INCH. L) plan to cut jobs as they struggle to suffer expanding losses due to low demand, aggravated by the consequences of the COVID-19 pandemic.
In addition to the thousands of layoffs announced throughout the UK, Pendragon said Thursday that it will close 15 loss-making retail outlets and eliminate 1,800 jobs. Inchcape did not specify how many workers would be affected.
Global lockouts to combat the pandemic have wraged British car dealers, who were already grappling with uncertainty through the widespread exit of the country from the European Union.
Rival Lookers (LOOK. L) made plans last month to fire 1,500 workers and close 12 other sites.
Inchcape’s shares fell 9.9% to 439.6 pence after also reporting a tax loss of 188 million pounds ($245 million) in the first part of the year, mainly due to impairment charges.
The company, which operates in more than 32 foreign markets, said its restructuring program would reduce prices by more than 90 million pounds.
Pendragon, which operates the Evans Halshaw, Stratstone, Quickco and Car Store brands, said planned adjustments followed a review that began before the pandemic and would reduce annual prices by around 35 million pounds.
“The effect of COVID-19 has accelerated the review of the Group’s long-term operating style… The Council took the resolution to introduce a more effective operating style with fewer retail outlets and simpler aid functions,” he said. .
Pendragon’s shares fell 1.1% for the last time to 7.98 pence.
In May, Pendragon reported underlying tax losses of 2.3 million for the first quarter.
UK car production fell more than 40% year-on-year in the first part of 2020 to its lowest point in 1954, according to an industry body.
Reporting through Samantha Machado in Bengaluru; Editing through Vinay Dwivedi and Mark Potter
All quotes were delayed for at least 15 minutes. See here for a complete list of transactions and delays.
© 2020 Reuters. All rights are reserved.