Used car chain Carcraft to close with the loss of 500 jobs
The UK's seventh largest second-hand car retailer has gone bust. All 10 showrooms to close with around 500 jobs lost.
The Carcraft chain of second-hand car supermarkets has closed according to administrators. Carcraft operated 10 used car dealerships at locations around the UK and had its head office in Rochdale, Greater Manchester.
Established in 1951, Carcraft was the seventh largest second-hand car chain in the UK selling up to 12,000 vehicles per year, often accompanied by its own breakdown cover and other policies which will now no longer be honoured.
Administrators Grant Thornton today blamed; "poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet" for Carcraft's predicament.
A spokesman also said that about 500 employees have been notified of their redundancy after it was decided that, in order to prevent further losses, the company would "cease operations with immediate effect." He added the business would retain a "skeleton staff" to help with the selling off of its assets.
The Carcraft group is said to have been making annual losses of about £8m. It operated its 10 sites in Sheffield, Leeds, Enfield, Stretford (Greater Manchester), Newport, Gateshead, Wednesbury (West Midlands), Lakeside (Essex) and Chertsey (Surrey).
"The business model has failed to evolve with the changes in the used vehicle remarketing sector and regulatory environment,” explained Grant Thornton’s Tarun Mistry.
We answer some of the key questions that Carcraft customers may have below...
What should I do if I bought a car with finance from Carcraft?
Your finance should still be valid as the contract will be with the finance company rather than Carcraft.
What will happen to my Carcraft breakdown cover?
Administrators said they would look at whether another company could provide roadside breakdown customers with a new deal at a "favourable rate".
Is my Carcraft warranty still valid?
Warranty policies will no longer be valid as per the adminstrators' announcement. Carcraft customers who want more information can call its helpline on 0800 923 9495 or email carcraft@uk.gt.com.
Have you ever bought a car from Carcraft? Tell us your impressions of the company in the comments section below…
