Peter Vardy to close two CARZ supermarkets due to "challenges on vehicle supply"

Peter Vardy is preparing to close two of its purpose-built large car CARZ supermarkets in Dundee and Glasgow as a result of challenges in the used car market post-Covid and lack of vehicle supply.

The business confirmed to AM there will be "255 regrettable redundancies" as a result of the planned closures, but is looking to place affected colleagues in alternative roles in other growing areas within the wider group.

It said there are 114 vacancies in the group to fill and it does expect a large amount of the vacanies to be filled by the affected colleagues at the group.

A spokesperson for Peter Vardy told AM there are no plans to close further sites and the business retains six of its CARZ supermarkets in Aberdeen, Edinburgh, Grangemouth, Kirkcaldy, Motherwell and Perth.

A statement from the dealer group said new roles have been created to accommodate affected employees, and the government agency PACE (Partnership Action for Continuing Employment) has been appointed to provide additional support.

The group's welfare team is also "readily available" to provide assistance and guidance, offering a compassionate and supportive environment for all colleagues.

Moreover, Peter Vardy's Foundation has been made available to offer financial aid should any individual face financial difficulties in the near future.

Simultaneously, Peter Vardy said it has signed terms with MG and will open two new sites in Kirkcaldy and Edinburgh at CARZ locations. This also follows the news that the group will be the sole distributor in Scotland for the Great Wall Motors' Ora brand.

There are plans to add MG and Ora to four of Peter Vardy's remaining CARZ locations.

It's likely some of the affected employees at CARZ could work in these new businesses in the coming weeks.

Peter Vardy, the company's chief executive, said: "Proposing the closure of any business, when the primary focus is on colleague engagement, welfare and career development is of course a disappointment.

"I am sorry to and for our affected colleagues but we will do everything in our power to support them in this period.

"The lack of a used car supply for car supermarkets has driven this decision, it hasn’t been performance or skill or the quality of our teams, it’s a change in the market conditions.

"While the decision to close our used car supermarkets is tough for us all, we firmly believe that reallocating resources, funds, and talent to the growing divisions within the group will bolster long-term prospects for the business and its colleagues."