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Chris M Wanted a V-10

Car dealerships down the pan in Basingstoke

http://cardealermagazine.co.uk/pu...ointed-city-motor-holdings/121810
A significant number of new car dealerships in Basingstoke were owned by one group that has gone into administration.  Majority of these are just down the road from where I work.  Sad news for those who have lost their jobs.  Wonder what the affected manufacturers will do to ensure that they are still represented locally?
Humphrey The Pug

It's a tough business being a dealer, however alot are run very poorly and live month to month.
gonnabuildabuggy

This is the real issue "Established in 2012 following a management buyout"

Obviously the MBO over paid for the business and have struggled to finance the business.

A real pity, but a real risk with MBO's, especially of such a large company.
Big Blue

Yes I thought the same about the MBO. Being the boss looks a piece of cake when you're looking on and seeing the 7-series, dinner dates and golf days but all that means is you need to make the time up somewhere. Another issue with MBOs is misguided loyalties. As a lower line executive you had a rapport with Sid but he wasn't on your budget. Suddenly as a board member you realise Sid is a costly overhead and should really go but you can't bring yourself to do it.
Nice Guy Eddie

I'm amazed that Ford haven't convinced a local dealership group to step in and take the business over with the incentive of wiping out a large portion of the debt. Its far easier for the manufacturer to incentivise a dealer group to take on the existing business than opening a new site.

To be fair to the local area I can think of 4 dealers within 10miles so maybe they think they're covered already
Tim

I think another issue with MBOs is that people go from being a senior employee to being an owner and reward themselves accordingly.
Could be the directors have all taken a decent pay increase at the start and then forgotten to reduce it if things are getting tight, especially if they've taken personal loans to help fund the MBO.
Frank Bullitt

All has the whiff of Phoenix Group about it, sadly

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