Shay Bannon, business restructuring partner at BDO Stoy Hayward, said: “Over recent years, the motor vehicle sector has become increasingly competitive and margins have tightened.
“This has had a knock-on effect on firms such as Dixon’s who have experienced falling volumes, cost inflation and price deflation.
“We plan to carry out an immediate business review and are currently in discussions with car manufacturers to work to secure the future of the individual dealerships.”
The administrators, who were appointed at the request of Royal Bank of Scotland (RBS) at 1215 today, are now looking at all the options including whether to sell the Dixon Motor Group as a lump sum or if it will be broken up.
In the meantime the business is trading as normal.
Dixon employs 1,400 staff across its dealerships and at the company’s Doncaster head office. The company is an independent car retail group with 46 franchise dealerships in 29 locations based in Yorkshire, North Lincolnshire, East Lancashire and Nottingham.
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