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Welcome Car Finance to close

Welcome Car Finance and its 10 used car sites face closure in order to help cut costs for its parent company Cattles.

Cattles said the decision was taken to conserve cash and improve liquidity within its business.

In a statement to the London stock exchange, Cattles said: “Welcome Car Finance has traded successfully during 2009 selling the stocks of cars it had from the end of last year without the acquisition of any new vehicles.

“However, without additional funds to acquire new stock, the business model will become unviable and it is likely that Welcome Car Finance will start to absorb cash.”

Consultation with employees has already begun over a reduction of approximately 130 jobs within the group. The costs of closure are estimated at £5 million.

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