Denkale, one of Chevrolet UK’s top 10 retailers, has entered administration after having its franchise terminated for alleged "financial irregularities", says the manufacturer.

The dealer, which represented Chevrolet in Southampton, Reading and Slough, was given instant notice of termination last Friday. Signage was removed and GM began removing cars funded by GMAC, General Motors’ finance division, until it was stopped by Denkale.

Denkale’s managing director Mahinder Gill said the group appointed administrator Baker Tilly at the same time as the termination. Its Fiat outlet in West London went into administration in March, and the resultant actions of its bank left the remainder of the group with no working capital to pay Chevrolet, GMAC and other creditors.

Chevrolet has established a hotline for Denkale's customers with outstanding orders.