A POPULAR High Street store has become the latest victim of the current credit crunch.
Motor World Ltd, which had a branch in the town, went into administration last Thursday (September 25).
The shop is now closed and there have been four job losses.
It is one of the UK’s largest independent automotive car care retailers with 237 retail units across the country. The company also specialises in additional products including cycles and leisure accessories.
As a result of a significant downturn in retail sales on the high street, 95 of the 237 retail units have been closed immediately with the loss of 300 jobs. This includes the Bromsgrove store.
The administrators have, however, sold the remaining 142 units of the business to Pacific Retail Limited; a company funded by the existing investors Bailey Capital Limited. This has saved 500 jobs.
Motor World Ltd had suffered from a significant downturn in retail sales on the high street which had led to a considerable number of its retail units trading at a direct loss.
Dermot Power, Graham Newton and Matthew Dunham, business restructuring partners at BDO Stoy Hayward have been appointed as joint administrators of Motor World Ltd.
Dermot Power said: “Despite a strong trading name and presence on the high street, Motor World Ltd has been a direct casualty of the current retail difficulties and the continuing squeeze on available credit."
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