F&I Management & Training

South coast dealer group Southgate Group looks likely to go into administration in the next “two or three days”, according to Kirstie Provan, partner with corporate recovery specialists Begbies Traynor, which was called in by the directors to offer advice on the rescue of the business.

Provan confirmed a buyer for the business was being sought but administration was likely with time at a premium.

Southgate Group is an eight-outlet dealer group ranked number 193 in the Motor Trader Top 200.

Based in the south of England across Hampshire and Dorset, last week it closed Mitsubishi branches in Andover, Romsey, Poole and Bridport. A Subaru and Peugeot site in Blandford, Dorset also closed.

More than 40 staff have been made redundant at the group. Company directors are in discussions over three Peugeot sites in Southampton, Winchester and Andover.

A spokesman for Peugeot said the carmaker was working with Southgate to find a solution that was in the best interest of customers.

"We already have a number of interested parties," he said.

Yesterday Mitsubishi confirmed it was looking for partners to fill the open points left by Southgate.

“As a priority we are now working with customers who have been affected by this unfortunate situation and are also searching for new representation across all four open points,” the company said.

Southgate Group is a family owned business, which resulted from the acquisition, by David Moulton, Garry Rowles and Norman Hoult in May 1996 of the Shorts of Winchester Peugeot operation.

DATED: 08.11.11

FEED: MT