Lancaster Group, second in the latest AM100, has closed two Rover dealerships, citing “a combination of economic circumstances” for the action.

Appleyard Rover Edinburgh and Lancaster Kettering, Northants, will close at the end of the month in a move affecting 100 staff. Both dealerships were acquired in 1997. Lancaster claimed the decision was not related to uncertainty regarding Phoenix's acquisition of Rover Cars last month.

It leaves Lancaster with four Rover outlets. The group said it made a full review of the business with Rover before making the decision and is advising customers of alternative dealerships.