The site also represents Hino, Daf, Foden and Isuzu and is expected to operate under its new owners from September 1.
News of the sale comes at a time when Williamson Motors, a family firm founded in Darlington in 1939, has allegedly been facing financial difficulties.
A source close to Williamson Motors has told AM that staff at its Darlington site were summoned to a meeting earlier this month, where they were told that the group was having “problems with the bank”.
The source also claims that Peugeot and Citroën have stopped supplying parts and cars to the business – neither wished to comment – leaving Williamson Motors to order parts from neighbouring dealers.
However, Simon Williamson, managing director at Williamson Motors, denies these claims and insists: “It’s business as usual at Williamson Motors.”
He declined to comment when asked to confirm that the Hartlepool site is being sold to Pendragon. In April, Williamson Motors paid £1m for a Citroën dealership in Darlington, which sits opposite its Peugeot outlet and headquarters. The group also has a Peugeot outlet in Spennymoor, bought from Nelsons four years ago.