Jobs axe now falls on car accessories firm
MORE jobs have been axed in Peterborough after a major national car accessory firm was hit by the credit crunch.
MORE jobs have been axed in Peterborough after a major national car accessory firm was hit by the credit crunch.Motor World branches in Lincoln Road, Peterborough, and High Street, Stamford, are among 95 nationwide which have been shut after the firm went into administration.
The closures have been blamed on "a significant downturn in retail sales on the high street, which had led to a considerable number of retail units trading at a loss".
The full extent of the closures is not known, neither is exactly how many people have been forced to leave their jobs, as no one was available for comment at either branch.
However, there is good news for the staff at the Motor World branch in Westlode Street, Spalding, as it was one of the lucky 142 branches which has been saved.
It is believed the Spalding branch has three staff, and it is hoped they will be kept on and the shop will carry on, despite it being taken over by another firm.
Nationwide, 300 jobs have been lost by the closures, but approximately 500 job have been saved after Pacific Retail Ltd, a company funded by the existing investors Bailey Capital Ltd, bought 142 of Motor World's units.
Martin Waite, of Bailey Capital, said: "We remain acutely aware that difficult trading conditions will undoubtedly continue, but remain hopeful that we can move the business forward following the restructuring that has taken place, and the consequent strengthening of the management team."
Motor World, which opened 40 years ago, was one of the UK's largest independent car care retailers, and specialised in car stereos, performance kits and tyres, as well as bicycles and accessories.
The closures came after the appointment of joint administrators from BDO Stoy Hayward.
One of the administrators, Dermot Power, said: "Despite a strong trading name and presence on the high street, Motor World has been a direct casualty of the current retail difficulties and the continuing squeeze on available credit."
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