Waters Autoplanet, the 22 site dealer group based in the south of England, has gone into administration.
The business is appointing Zolfo Cooper as its administrator who will look to sell the business as a going concern.
John Hannah, Waters Autoplanet chairman, told AM: "Zolfo Cooper is working closely with our auditors ASE to find appropriate partners to acquire sites and staff and this process is on-going."
He could not comment further on reasons behind the company entering into administration at 1.15pm today.
The dealer group's website is still operational and calls are being taken at dealerships advising customers that sales executives will "call back".
The group represents Kia, Renault, Fiat, Mazda, Peugeot and Seat and also has used car supermarkets as well as a HiQ fast fit operation. The group’s sites are based in Barnet, Chingford, Harpenden, Letchworth, Maidstone, Southampton, St Albans and Tunbridge Wells.
The group closed two of its four Peugeot sites in 2008, but had been expanding recently with dealer openings in Tunbridge Wells with Kia and Seat in July 2010.