UK car giant plunges into administration as all employees lose their jobs

Scottish car dealership business Cars4You has gone into administration, resulting in redundancies

A UK car dealership business has collapsed into administration, with all 26 employees reportedly made redundant and seven sites facing closure.

Cars4You, which operated used-car dealerships across Scotland for 10 years, entered administration on October 2. George Dylan Lafferty, of BTG Begbies Traynor, was appointed administrator.

The family-run business, headquartered in Edinburgh, had sites in Edinburgh West, Edinburgh, Straiton, Dunfermline and Falkirk. It also promoted two additional businesses, E-Cars4You and Performance-Cars4You, both of which were based on Bankhead Drive in west Edinburgh.

Thomas McKay, managing partner of BTG’s Scotland and Northern Ireland offices, said the firm was “implementing safeguards” at the showrooms and was supporting affected employees.

In a post on LinkedIn, Mr McKay said: “BTG have been appointed administrators over Cars4you Ltd by the company lenders BCA. We have implemented safeguards across the car showroom sites all over Scotland and are providing support to the employees affected by this engagement.”

The business is understood to have an online inventory of around 1,500 vehicles, including used cars and light commercial vehicles, according to the Express.

Speaking to automotive news outlet AM-online, Mr McKay confirmed that all 26 employees had been made redundant.

He said: “At this point in the process, we can confirm that sadly all 26 employees have been made redundant, and we have been working closely with those affected to help them access the support and financial entitlements available to them, including assistance from Partnership Action for Continuing Employment (PACE) and the Redundancy Payments Service.

“Our priority is to ensure the employees receive the guidance and advice they need during this process, and also to maximise the return from the sale of assets, including vehicle stock, to benefit the creditors.”

The Mirror has contacted the administrators, BTG Begbies Traynor, for comment.

It comes as Telford Transport Solutions, a transport, warehousing and fulfilment solutions provider based in Telford, Shropshire, entered administration on October 2.

David Kemp and Richard Hunt, of Exigen Group, were appointed joint administrators, according to The Gazette. Exigen said the company had accumulated approximately £1.2million in HMRC arrears over several months.