Bolton-based car dealership Lythgoe Motors Ltd, which underwent a management buy-out in 2008, has gone into
administration. Zolfo Cooper confirmed their appointment as administrators.
Latest accounts for the year to December 2007 show pre-tax losses of £2m compared with £668,000 in 2006. Revenues fell 4 per cent to £67.2m. Many car dealerships have found trading very tough in the wake of the credit crunch. Market conditions, no doubt, played a large part in the company's decision to sell its Fiat Rochdale site in June 2007 and close down the Citroen dealership in Walken in the same year. Last summer Mazda Wigan was also closed.
The business employs around 160 staff and operates five sites: Higher Bridge Street, Bolton (Citröen); Manchester Rd, Bolton (Mazda and Fiat); Oldham (Mazda and Citröen); Rochdale (Mazda and Citröen); and an after-sales site at Wardley.
Zolfo Cooper are already in talks with potential buyers for the business and are optimistic of achieving a sale of the majority of the sites in the near future. A number of interested parties have already submitted offers for individual sites.
Zolfo Cooper said none of the offers so far received have included the Wardley after-sales site. Consequently 31 employees at this site have been made redundant. The Joint Administrators will continue to explore all possible options for this site.
Kevin Coates, of Zolfo Cooper, said; "The priority for the Joint Administrators is to seek a buyer for the remaining sales sites and we are confident of achieving this in the coming days and weeks. The remaining franchises represent a strong investment opportunity for other players in this market to expand their businesses and we are seeing significant interest from a number of parties."
