Evans Halshaw Car Store in Lincoln has now closed as part of 22 closures nationwide.
Owners Pendragon PLC, have closed 22 of its 34 stores nationally, with Lincoln’s Newark Road store closing yesterday.
As of September 30, 2019, all cars at the site were removed, with the store seeing its doors close for the last time.
This news comes following Pendragon’s Financial and Operational Review from June 2019, which stated: “The used car market presents an exciting opportunity and provides significant potential for future profitable growth.
“However, we expect to see the losses of £11.9 million incurred in FY18 accelerate to c.£25 million during FY19, principally as a result of execution inefficiency and the impact of excess used car stock during the first-half as described above.
“Significant management focus is currently being dedicated to the development of the Car Store strategy.”
As part of the review, the Pendragon Board commissioned a full market and operating model assessment of Car Store, which confirmed that there was a significant and attractive market opportunity and that the proposition was well received by its target customers.
However in a September update to shareholders, a clear roadmap of short-term and long-term steps was established highlighting actions which included the closure of 22 Car Stores and one preparation centre as these sites ‘did not fit the long-term strategy’.
The review stated that ‘the majority of these sites are historic franchise locations that are not suited to the Car Store model’.
This has left 12 Car Stores serviced by two preparation centres in the UK.