Used car dealer Carcraft announces closure

By Danielle Bagnall
|
30 April 2015

Used car dealer Carcraft has announced it has gone into administration.

The company has appointed Grant Thornton UK LLP to deal with the administration of CC Automotive Group Limited, UK Car Group Limited and Pennine Metals A Limited; trading as The Carcraft Group.

Customers with add-on products such as Drive Happy Plans (DHP), warranties, MOT, servicing and roadside assistance will no longer be valid.

Automotive advisory partner at Grant Thornton UK LLP Tarun Mistry told the Manchester Evening News: "The business model has failed to evolve with the changes in the used vehicle remarketing sector and regulatory environment.

"Overall, this sector is still vibrant and represents a significant opportunity for the appropriate operating model to benefit from the growing and changing used vehicle market."

Grant Thornton UK LLP added: "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. The Group is heavily loss making recording losses of c£8m per annum for a number of years."

The group's finance arm All In One Finance Limited is awaiting FCA clearance, and is expected to follow in administration.

Carcraft’s head office is based in Rochdale, with a further 10 sites nationwide. All 550 members of staff have been paid for the month-end of April, and have been made redundant.

Author: Danielle Bagnall

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sgcb - 01/05/2015 12:57

Can't understand why it took so long.
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Peter - 02/05/2015 10:56

Can't say I'm surprised. Feel sorry for the sales staff the most.
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David Kershaw - 02/05/2015 10:59

BEN asks former employees of Carcraft to utilise support services Automotive industry charity is proactively extending its help and support to those affected Following yesterday’s news that used car supermarket, Carcraft has brought in administrators to close the company leaving an estimated 550 employees without a job - BEN, the automotive industry charity, has launched an action plan encouraging those affected to turn to them for support. Given that many of the employees were only made aware of the situation when they arrived at work yesterday a vast number will today be experiencing shock, stress, worry and an uncertain future. As yet, the full details of the circumstances and the long term future impact cannot be assessed. BEN can help them through the process and is keen to ensure the former employees understand the confidential and independent help available throughout this unsettling and potentially difficult time: BEN can offer; Professional Listening/Advice Services – Those in need can call any time they have an issue or just need someone to listen – Support with how to manage existing monetary commitments – Advice on entitlement and application processes for: o Job Seekers allowance o Redundancy payment claims o Other potential benefits suitable to an individual’s circumstance Signposting – Directing to, and providing details of, other appropriate agencies and support organisations appropriate for their need Short term financial assistance – Whilst not a long term solution, BEN can provide financial help where appropriate Carcraft has appointed Grant Thornton UK LLP as administrators and BEN has made an approach in the hope that through them, and its own communications, it can reach out to all concerned. Commenting on the situation, Nigel Rothband, BEN’s Chief Operating Officer stated; “The loss of over 500 automotive jobs is a huge blow to our tight knit industry community, and we are urging those affected to get touch with BEN as soon as possible. Not only do we want to help safeguard against those who find themselves without employment but also provide practical help to get them through a very difficult and stressful time. When you suddenly find yourself out of work, it’s overwhelming with what to do, where to go and will I pay the bills. You don’t need to cope alone, one phone call to BEN’s helpline will provide this information and they will help you every step of the way.“ To contact BEN’s Support Services team in complete confidence, call 01344 876770, text 07781 472622, email careservices@ben.org.uk, visit ben.org.uk/gethelp
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John - 03/05/2015 15:44

Cannot see how this mob lasted so long. Huge interest rates to punters made a 4 grand trade lot into a 12 grand liability to poor unsuspecting buyers.
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