Administrators appointed to City Motor Holdings

Administrators appointed to City Motor Holdings

Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies, which together operate a total of 13 new and approved used car dealerships across the Thames Valley region.

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Headquartered in Basingstoke and with sites in Newbury and Reading, the companies operate dealerships for a number of vehicle manufacturers, including Ford, Peugeot, Citroen, Suzuki, Kia, Honda, Seat and Skoda, in addition to operating the PX Centre in Basingstoke, which specialises in the sale of used cars.

Last week, following a prolonged period of poor trading, the company closed several of its dealerships.  Following the appointment of administrators, a total of 267 of the company’s employees were made redundant. The joint administrators have retained 19 members of staff to assist them in the winding down of operations.

Steve Absolom, joint administrator and director at KPMG, commented: “While industry figures indicate that the number of new car registrations in the UK has remained consistently high over the last two years, the number of nearly-new and used cars also coming to market has put pressure on motor dealerships around the country. Against this backdrop and after a sustained period of poor trading, the directors of City Motors Holdings took the difficult decision to close its operations and call for the appointment of administrators.”

Will Wright, joint administrator and KPMG Partner, added: “Over the coming days, our principal focus is on supporting employees with their redundancy claims and working with the vehicle manufacturers to effect an orderly closure of the business.”

He added: “We are aware that there are a number of customers who will be affected by this administration. While steps have already been taken to contact many of them, any customers who have immediate concerns should contact the following dedicated email address: citymotors@kpmg.co.uk.

-ENDS-

 

Notes to Editors:

Steve Absolom & Will Wright from KPMG have been appointed joint administrators over the following companies: City Motor Holdings Limited; Gowrings of Reading Limited; Gowrings of Newbury Limited; City Basingstoke Limited; Viking Basingstoke Limited; Houndmills Autoplaza Limited; Portfield Sports Cars Limited and Marshall Roebuck Limited

 

The list of dealerships affected by this administration include:

Ford Newbury

Peugeot Newbury

City Kia Newbury

Ford Basingstoke

City Suzuki Basingstoke

City Seat BasingstokeCity

Skoda Basingstoke      

City Honda Basingstoke

Peugeot Basingstoke

Citroen Basingstoke

PX Centre Basingstoke

Ford Reading

Peugeot Reading

 

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About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 12,000 partners and staff.  The UK firm recorded a revenue of £1.96 billion in the year ended September 2015. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 155 countries and has 174,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such. 

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