Motorauctions Leeds has gone into administration after 25 years of trading amid fears that a buyer may not be found to take on the business.
The company is understood to have debts “in the high six figures” and made 25 full and part-time staff redundant earlier this month.
Company directors called in administrators Begbies Traynor following the loss of several commercial contracts, according to the Yorkshire Post.
Its spokeswoman said that no buyer had been found for the business, but there had been “substantial interest” in Motorauctions Leeds’ premises on Hillidge Road, close to the M621. That site is now likely to be sold separately from the auction business.
It is not known how many creditors are owed money by the firm.
The administrators’ spokeswoman said: “The statement of affairs listing the assets and liabilities has yet to be completed, but the management accounts suggest liabilities will be in the high six digits.
“At this stage it is not known how that is broken down.”
There are concerns that car dealers whose vehicles were sold but not paid for could lose money as a result of the firm going into administration.
Motorauctions Leeds was an independent firm set up in 1986.
It used to hold four car auction sales a week and fortnightly 4X4 sales along with dedicated fleet car sales for businesses.