Scunthorpe motor dealer GoCar Ltd has gone into administration, putting 35 jobs at risk.
It has been announced that administrators have been appointed for the 16-year-old business on Mannaberg Way.
Talks are continuing with "interested parties" over a rescue package, although the firm is still carrying out limited trading.
The administrators are Manchester firm Leonard Curtis.
Spokesman Andrew Bailey confirmed a secured creditor of GoCar had applied for the administration order at Manchester High Court.
Bailey said: "It is our intention to sell GoCar as a going concern and we are in talks with several interested parties."
He declined to discuss the scale of debts incurred by the Scunthorpe firm or its current assets.
Partners John Sawyer and Gary Thynne bought GoCar in June 2007 for an undisclosed sum.
At the time the new owners announced a £3 million expansion programme and planned to increase the 400 cars on the site two-fold.
Early in 2008 the company invested £250,000 on an automated MoT testing facility and set up a van and car hire rental business on the Mannaberg Way site.