HR Owen has finally managed to sell off its four Volvo dealerships in a management buy-out to Regent Automotive.
The MBO was led by Regent’s managing director Tracey Perry, previously HR Owen's divisional director for the Volvo franchise, and Regent aftersales director Frank Fisher.
HR Owen had been trying to sell the four sites, which are all located in London at Colindale, Euston, Chiswick and Regent's Park, since it first announced its strategy to focus on specialist prestigious vehicle sales in September 2007.
The sale had been delayed last year due to stalled negotiations and what HR Owen called “complex property issues”.
The dealerships, which employ 110 people and are expected to turn over £40 million in 2009, will trade under the Volvo Cars London name.
Finance for the acquisition was put together with a combination of support from Barclays Bank and Ford Financial, parent company of Volvo Finance, which funded the vehicle requirements for the business.
HR Owen’s Volvo business had gross assets of £9.3 million and generated a loss for the six month period of £19,000 before tax.
However, Regent Automotive acquired the four dealerships for £186,000, with no payment for goodwill.
The proceeds from the sale will be used to reduce HR Owen's debts.