Lookers CEO Raban resigns following Alpha takeover

Lookers' CEO Mark Raban is to exit the automotive retail giant on December 31.

In a leaked memo, Raban, who has been with the business for nearly five years, expressed gratitude to his colleagues and highlighted the significant accomplishments achieved during his tenure.

The news follows Lookers' transition to private ownership, following a £504 million deal by Canadian firm Alpha Auto Group in October.

Initially, Global Auto Holdings proposed 120p per share, which was rejected by its majority shareholder, Cinch. However, a revised offer of 130p per share was accepted, securing the deal. The privatisation resulted in the company's delisting from the London Stock Exchange on October 9.

Raban commended his colleagues for the successful recovery despite the challenges faced in 2019/20 and the pandemic, urging them to remain focused on supporting each other and the customer. Raban expressed confidence in the company's future, noting Lookers' enduring legacy of over a century in business.

Lookers, having recently shed its PLC status, is now planning to shed 200 jobs through redundancy and is undergoing a formal consultation period as part of a restructuring effort.

A company spokesperson stated that the proposed redundancies primarily impact head office roles. A Lookers spokesman said: “A number of people linked to the central support function of running a PLC have had redundancy proposed. That number is around 3% of the 6,500 staff at Lookers.”

“Unfortunately, now that Lookers is no longer listed on the London Stock Exchange, a certain number of corporate and support roles that relate to its status as a listed company may be affected by this proposed programme.

“In keeping with normal practice, we have notified those employees who are affected via a formal letter, explaining that we have now entered the formal consultation period with employee representatives as a next step.”

The company has yet to confirm Raban's departure.