500 jobs lost as Carcraft reaches end of the road
CARCRAFT, the chain of used car supermarkets, has ceased trading with more than 500 job losses.
The business, sold by its founders the McKee family to a management team in April 2014, had 10 sites nationwide, including Leeds, near junction 28 of the M62, and Sheffield, by junction 34 of the M1.
In the year to March 31 2014 the group, which was backed by Apollo Ventures, made a loss of £14.6m on revenue of £179.7m.
A former supplier to the company said: “Everyone is shocked. Liverpool had always been the poorest performing site and when it was closed we presume it was part of reorganisation under the new chief executive.
“All staff were told the news the business was closing on Thursday morning.”
In a statement Grant Thornton said partners Daniel Smith and Joe McLean, have been appointed as administrators after a sales process, launched in February, failed.
Daniel Smith 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.
“Carcraft will retain a skeleton staff to assist with the realisation of assets. In the event there are any approaches from interested parties post appointment we will react to these accordingly.”
The group’s finance arm, All In One Finance, which is regulated by the Financial Conduct Authority (FCA), is expected to be placed into administration shortly, once FCA clearance has been obtained.
Grant Thornton said the business had encountered a host of difficulties: “The group operates in a competitive market and 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. The group also has legacy PPI claims.”
