Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Dixon Motors, a UK motor vehicle retailer, is to close more than half of its network of franchises with the loss of 800 jobs. The firm is based in Doncaster, and operates franchises across the North of England at which 1,400 are employed. The firm went into administration at the end of July 2007, and attributed this to the steep decline in sales that the company has experienced. Administrator BDO Stoy Hayward has sold 19 of Dixon's 46 franchises to Pendragon, the UK's largest car dealership owner. The deal saves the jobs of 600 of the 1,400 staff. However, 27 of the company's sites, including the head office in Doncaster, are to close with immediate effect.
Graham Newton, business restructuring partner at BDO Stoy Hayward, said: ‘Since our appointment, we have carried out a business review and held discussions with all of the car manufacturers to try to secure the future of all of the dealerships.’
‘The successful sale of 19 dealerships will protect the future of 600 jobs across the region.’
‘Regrettably, in the time available, we have been unable to conclude any sales of the remaining dealerships within the group and, as a result, have no alternative but to close 27 sites with immediate effect, resulting in 800 job losses.’
Eurofound (2007), Dixon Motors, Closure in United Kingdom, factsheet number 65670, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/65670.