Brooklyn Motors, ranked 64 in the AM100, has gone into receivership.
AM has learned that Nigel Ruddock and Neil Tombs of Grant Thornton have been appointed administrative receivers today.
Vertu Motors has bought part of the £150m turnover group (click here) saving 160 jobs.
Two other Ford sites, at Malvern and Kidderminster, have been sold separately to MTCR Marketing, another company owned by Brooklyn's managing director Tim Hill. That deal has saved 50 jobs.
Four Toyota dealerships and one Skoda operation are understood to have been closed, with the loss of 100 jobs.
AM understands that the group had been offered for sale for several months.
Grant Thornton said: "The group had incurred heavy losses over a number of years and was affected by the general downturn in the sector during 2008, as well as the wider economic slowdown."
Toyota has this afternoon confirmed that its centres operated bt Brooklyn at Hereford, Worcester, Cheltenham and Gloucester have ceased trading.
"Future Toyota representation in these areas is currently under review," said a spokesman.