Commercial Motors South West, the Mercedes-Benz van and truck dealer, has gone into administration, blaming the economic downturn.
The firm employed around 200 people at seven sites in the south west.
Administrator Nigel Morrison, of Grant Thornton, said: "In the end, the directors had no choice but to place the company into administration.
"They had been attempting to sell the company since before Christmas but while there was interest, it was not possible to conclude a sale.
"We are hoping to enter into early discussions with Mercedes Benz and a possible buyer with a view to transferring the majority of the business to a new operator.”
Grant Thornton had to make the majority of employees redundant as it was unable to place the company into a position to trade after it was appointed.
Mercedes-Benz has already appointed City West Commercials as the new franchise holder for the south west. Commercial Motors South West had its franchise agreement terminated when it was placed into administration.