Reg Vardy is to re-franchise its three MG Rover dealerships in the event of the brands demise.

The three dealerships account for £25m in annual sales, representing under 2% of Reg Vardy’s annual turnover.

Reg Vardy has approximately £0.6m of money owed outstanding from MG Rover. The group said it would have to make provisions for this plus possibly on the valuation of MG Rover new and used vehicles and warranty obligations.

The group has predicted that re-franchising these dealerships will, “not impact on trading or results in the next financial year”.

Sir Peter Vardy, chief executive of Reg Vardy, says: “Given the current uncertainty, one thing is clear - as dealers we are not going to be immune from the impact of MG Rover’s situation.

“However, as a Rover dealer since 1982 we sincerely hope that a positive route forward can be found for the business and that Reg Vardy can continue to support UK car manufacturing.”