UK car dealer plunges into liquidation – open since 2019

A UK used car dealership has plunged into liquidation, in another devastating blow to the motoring industry. Drive City Cars, a secondhand dealership based in Manchester, appointed liquidators on June 11.

The news was published in the London Gazette just days later, with a notice appearing online on June 17. There is no information on how staff will be affected at this early stage. A Resolution for Winding-up order was also issued on the same day, which made clear that the company was being wound up “voluntarily”.

According to Companies House, the business is undergoing a creditors’ voluntary liquidation, which commenced on June 11. This happens when the insolvency process is initiated by the company through its director.

The London Gazette notice stated that Tauseef Rashid of Qimzen Advisory has been appointed liquidator of the business.

Drive City Cars, based on John Street, Hyde, Greater Manchester, was described as an “independent car dealer” specialising in “quality, pristine” vehicles.

The business sold everything from family hatchbacks such as the Ford Fiesta and Vauxhall Ampera to more sporty models such as the BMW 1 Series.

It also advertised convertibles such as the BMW 6 Series to SUV crossovers like the Dacia Duster. The firm also dabbled with motorcycles, previously advertising a BMW M1000RR Carbon.

According to Companies House, the company was first incorporated back in June 2019, meaning the dealership would have just celebrated its seventh anniversary. Drive City Cars is not the first motoring brand to fall into difficulty this summer, with a series of companies struggling.

The Car Sales Factory Limited, a used-car dealership based in Lancashire, appointed liquidators in early June. Meanwhile, Dub Custom Cars Limited, vehicle customisation and repair experts based in Essex, appointed liquidators on June 30.

The company had established itself as one of the leading “vehicle customisers” in the country, with a particular focus on vinyl wrap application. KleanDrive Ltd, an electric car conversion company based in Essex, also plunged into administration back in May.