Staff at the Seward (Wessex) Ltd parts centre were informed by administrators this morning of the news.
Twelve people will be redeployed, with 26 redundancies, at Grange Road, Christchurch. It was stressed that the dealership at 20 Bailey Drive, Christchurch, three miles away, is not affected.
Greg Palfrey, the joint administrator at Smith & Williamson, said: ‘We had no choice because the Grange Road site in Christchurch was not economically viable.
‘Even so, this was a very difficult decision because we are acutely aware of the impact the decision will have. We will be providing them with as much support and advice as possible. Fortunately we will be able to safeguard 12 jobs through redeployment.
‘I would like to pay tribute to the professionalism of the staff in what is clearly a difficult situation.’
The Grange Road site is used for the storage of spare parts and vehicles. Customers who have been using the service and MOT facilities there will be redirected to Seward (Wessex) Ltd’s operational dealerships at 20 Bailey Drive, Christchurch, and 400 Poole Road, Branksome, Poole.
Palfrey, who heads up the restructuring and recovery services arm of Smith & Williamson in the regions, stressed that the dealership at 20 Bailey Drive, Christchurch, is running as normal and should not be confused in any way with the Grange Road site.
The Grange Road site, for which the freehold is privately owned, will be wound down over the next few weeks, he added.
Smith & Williamson were appointed administrators of Seward (Wessex) Ltd on February 21 to manage the company’s affairs, business and property.
As previously reported, both Vauxhall Motors and Chevrolet UK have agreed to allow vehicle sales and servicing to continue while buyers for one or more sections of the business are identified.
The closure of the Grange Road site follows that of the Seward (Wessex) Ltd dealership in Blandford Forum last week. That site was ‘not economically viable’ either.