CAR supermarket Carcraft has collapsed into administration with the loss of 500 jobs.
The loss-making group had an annual turnover of £120m and a branch in Langland Way, Newport.
Administrators Grant Thornton said the group trading as Carcraft had suffered from “poor market reputation”, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet, all of which had hindered investment.
The administrators added that the group had recorded yearly losses of £8m and had
legacy Payment Protection Insurance claims.
The group sold more than 12,000 used vehicles a year at an average price of £9,000.
Tarun Mistry, automotive advisory partner at Grant Thornton, said: "The business model has failed to evolve with the changes in the used vehicle remarketing sector and regulatory environment.”
Carcraft will cease operations with immediate effect and all employees have been informed and been made redundant, a spokesman said.
Grant Thornton added that customers with Carcraft warranty, MOT, servicing and roadside assistance would no longer be covered.
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