Used car dealer Carcraft has announced it has gone into administration.
The company has appointed Grant Thornton UK LLP to deal with the administration of CC Automotive Group Limited, UK Car Group Limited and Pennine Metals A Limited; trading as The Carcraft Group.
Customers with add-on products such as Drive Happy Plans (DHP), warranties, MOT, servicing and roadside assistance will no longer be valid.
Automotive advisory partner at Grant Thornton UK LLP Tarun Mistry told the Manchester Evening News: "The business model has failed to evolve with the changes in the used vehicle remarketing sector and regulatory environment.
"Overall, this sector is still vibrant and represents a significant opportunity for the appropriate operating model to benefit from the growing and changing used vehicle market."
Grant Thornton UK LLP added: "The Group operates in a competitive market and has suffered from poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet all of which have hindered investment.
"The Group also has legacy PPI claims. The Group is heavily loss making recording losses of c£8m per annum for a number of years."
The group's finance arm All In One Finance Limited is awaiting FCA clearance, and is expected to follow in administration.
Carcraft’s head office is based in Rochdale, with a further 10 sites nationwide. All 550 members of staff have been paid for the month-end of April, and have been made redundant.