Tuesday, November 15, 2011
Southgate Group goes into administration
Poole-based Southgate Group has gone under after appointed administrators failed to create a rescue plan for the business last week.
The company went into administration due to cashflow difficulties, poor trading and the current economic climate.
The company was placed into administration by Begbies Traynor on November 11 and the affairs, business and property is now being managed by joint administrators Julie Palmer and Kirstie Provan.
The dealer group’s website has been closed down with a holding message to contact the administrators.
Southgate closed its two Mitsubishi dealerships and a joint Subaru and Peugeot site last week, leaving it with Peugeot sites in Southampton, Winchester and Andover which continue to trade. A total of 111 staff have been made redundant.
Palmer, a partner at Begbies Traynor, told the Southern Daily Echo there had been some parties interested in purchasing the business, but had decided to wait for the administration to go through to set up fresh dealerships on the Southgate sites. She said some staff could be rehired.
DATED: 15.11.11
FEED: AM
