Online motor retailer New Car Discount has ceased trading with the loss of 14 jobs.

Joint administrators Andrew Poxon and Kevin Murphy, from Leonard Curtis, were called into the business in Nelson, Lancashire, by its chief executive David Schofield.

The business was founded in 2002 to sell new and pre-registered cars that were supplied by franchised dealer partners.

Schofield told AM: “I’m still pretty raw. I’ve lost my business and it’s cost me a huge amount of money over the last few weeks, probably £500,000.”

He blamed its demise on banks’ reluctance to continue funding because of the credit crunch.

Accounts at Companies House show the business had suffered an £85,624 loss on revenue of £14.1 million in 2006.

It owed creditors £1.14 million at that point. In the previous year, the company’s losses amounted to £71,959 on £15.7 million sales.

Schofield said New Car Discount had returned to profit in 2007, but wouldn’t reveal any figures.

In March the company switched to Yorkshire Bank after its relationship with Royal Bank of Scotland deteriorated.

It was only in April 2007 that managing director Terry Hogan told AM the business was flourishing and said he had turned down two buyout offers.

The collapse does not affect Motoring.co.uk, an online car advertising venture which was devised by Schofield, Hogan and manager Chris Green when at New Car Discount.

Green and Hogan bought out Motoring.co.uk in November 2007 for £325,000 and began trading as a separate company in January.

Its registered trading address is the same building as New Car Discount.

Green told AM he hasn’t seen Schofield for several weeks.

“Motoring.co.uk is a completely separate company. It has no debt, and it generates a fair income every month that covers overheads and pays salaries,” he added.

Hogan resigned his directorship of New Car Discount in February.

In February Schofield resigned his directorship of Motoring.co.uk.

AM understands that dozens of New Car Discount customers who have paid deposits for cars, and received the registration number of their vehicle, are now trying to locate them at dealerships or through the relevant car manufacturer.

Leonard Curtis has appointed Steve Durkin Vehicle Sales as its handling agent to marry up cars and customers.