200 jobs face axe as car dealership folds

A Bristol-based Mercedes van and truck dealer has gone into administration, with the loss of up to 200 jobs.

Commercial Motors South West Ltd, based in Avonmouth, has suffered financial problems in the last six months. It was the main Mercedes-approved supplier for vans and trucks across the West. Staff were told last Thursday not to report for work the following day and to wait at home for news.

Yesterday they received letters telling them they had been made redundant, that they would have to lodge claims for wages owed with administrators Grant Thornton and advising them to sign on as unemployed.

Some may be taken on by the new dealer appointed last night by Mercedes-Benz UK to take over the franchise.

One employee of Commercial Motors South West, who asked not to be named, said Mercedes-Benz UK representatives had visited the dealer's sites to remove stock, parts and specialist equipment it owned. She said: "We're totally devastated. We knew there were financial difficulties but it was an absolute bolt out of the blue when Mercedes said they were coming to take everything of theirs and we were told not to turn up for work.

"Now we have had a letter telling us our contract of employment is terminated and that we should put in a claim for breach of contract for any pay in lieu of notice."

Commercial Motors South West had sales of £43 million in 2007 and £47 million in 2008 and operated seven sites from its head office at Avonmouth It had a second Bristol base in Hartcliffe.

Administrator Nigel Morrison said the directors had been trying to sell the company since before Christmas but it was not possible to complete a sale in the time that was available.

Mercedes-Benz UK announced last night that City West Commercials, was its new franchisee in the area, taking over responsibility for dealer sales and servicing of vans and trucks.

A company statement said: "Mercedes-Benz UK Ltd and City West Commercials are striving to safeguard the futures of as many as possible of the 200 Commercial Motors employees."

The closure of Commercial Motors does not affect Mercedes cars, which are sold by an unconnected dealership that continues to trade as normal.