Around 600 workers at a car parts supplier faced an uncertain future today after the firm was put into administration less than a week after being taken over.
Euro Car Parts (ECP) bought rival Sheffield-based LSUK, which has 53 branches nationwide, last Wednesday.
But ECP said it had been forced to place the entire business into the hands of administrators today after failing to secure investment support.
The firm said: "Unfortunately, it became clear, very quickly, that it was simply going to be impossible to continue with investment without the required support, which was not forthcoming.
"After a considerable amount of non-stop work and investment into LSUK over the past five days, the ECP directors realised that they had no option but to place LSUK into administration with effect."
Lead administrators Tenon Recovery is in contact with several interested parties for LSUK, ECP added.
As well as its branch network which supplies car parts and motoring services, LSUK operates subsidiaries M I Diesel Products, Protech Automotive (UK) and Yeovil Rewind.
LSUK staff turning up for work today reportedly found themselves locked out and a notice on the door telling them the company had ceased trading. The firm has about 110 staff at its head office in Sheffield.
Wembley-based ECP, which is one of the UK's largest car parts suppliers, said it "deeply regrets what has happened, but to continue any longer with LSUK, as it currently stands, was unfortunately a futile operation".
The group added that Tenon was planning to liaise with LSUK staff and "everything will be done to help and advise them with regards to the situation".Reuse content