A UK car dealership giant with sites across Scotland has plunged into administration, with dozens of staff set to lose their jobs.
A car dealership has plunged into administration (Image: Getty)
Another UK motoring company has plunged into administration in another major blow to the car industry. According to the London Gazette, Cars4You, which operates car dealerships across Scotland, appointed administrators on October 2. News the company had dropped into administration came to light a week later, with details published in the London Gazette on October 9.
In a blow to staff, it is understood that all 26 employees have suffered job cuts as a result of the move. It’s the latest car dealership closure after Group 1 Automotive shut sites earlier this year. Cars4You is a family-run firm, with the business overseeing five main dealerships across some of the biggest cities in Scotland.
The business has sites in Edinburgh West, Edinburgh, Straiton, Dunfermline and Falkirk. However, Cars4You also promotes two separate sites.
These are E-Cars4You and Performance-Cars4You, which has its operations based at Bankhead Drive in Edinburgh. The business, headquartered in Edinburgh, has been taken over by administrators from BTG Begbies Traynor (Central) LLP. BTG’s
Thomas Mckay stressed that the team were “implementing safeguards” at car showroom sites and were offering support to affected staff. Posting online, he said: “BTG have been appointed administrators over Cars4you Ltd by the company lenders BCA. We have implemented safeguards across the car showroom sites all over Scotland and are providing support to the employees affected by this engagement.”
Job cuts are expected in a blow to staff (Image: Getty)
The business is understood to have an online inventory of around 1,500 vehicles which includes used cars and light commercial models. Mr McKay added that the used car retailing sector was facing “increasing pressure” as spending tightens across the industry.
Opening up on the future of staff affected by the decision, Mr McKay told AM News: ““At this point in the process we can confirm that sadly, all 26 employees have been made redundant, and we have been working closely with those affected to help them access the support and financial entitlements available to them, including assistance from Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service.
“Our priority is to ensure the employees receive the guidance and advice they need during this process, and also to maximise the return from the sale of assets including vehicle stock to benefit the creditors.”
The Express has contacted BTP, administrators overseeing Cars4You, for further comment.