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Phoenix brought down by MG Rover collapse

PricewaterhouseCoopers has today been appointed joint administrators of Phoenix Venture Motors Limited.

Rob Hunt, joint administrator and partner PricewaterhouseCoopers said: "Following the administration of MG Rover Group Limited, which owed PVM a substantial sum of money, and our announcement on Friday that the chances of securing a sale of MG Rover Group Limited as a going concern look less likely, the directors of PVM were left with little option but to seek an administration order."

PVM operates MG Rover dealerships selling new and used stock, plus servicing and spares. It operates from 11 sites in the Midlands, North West and South of England and has 472 employees.

In the year ended December 31, 2003 it had turnover of about £80 million and reported a loss of £2.5 million.

PVM has dealerships in: Preston, Chorley, Coventry, Northampton, Rednal, Bromsgrove, Kidderminster, Hatfield, Romford, Oxford and Muswell Hill, London.

Those in Northampton, Oxford and Muswell Hill, London, have been closed with the loss of 86 jobs.

Hunt said: "These closures reflect the results of our urgent review of PVM and take into account profitability and sales potential. We will continue to work with management to establish which of the remaining sites can stay open and continue to trade so as to preserve parts of the distribution channel for MG Rover cars."

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