Amethyst Motor Group, which has Honda dealerships in Cheltenham, Gloucester and Chippenham, has ceased trading.
A member of staff told AM that the directors informed employees last night that the business was closing with immediate effect.
An administrator is yet to be appointed, AM understands.
The group also represents Seat at Cheltenham.
The member of staff said: "All the staff were sacked at 4pm yesterday. There's no money for staff, we were told one day before pay day. How do we pay our own bills?"
The group, which posted a net loss of £298,000 in 2006, the last year of accounts recorded at Companies House, is headed by chief executive Roger Moore, company secretary Catherine Burge and chairman Andrew Stanton.
Around 80 staff were employed by the group.
In a statement, Honda (UK) said it was sad to confirm the closure.
"We are now holding discussions with interested parties to secure new ownership of the Honda franchises. We will provide ongoing support for new and existing Honda customers in the area and will announce details of this once finalised," it added.