12:39 am, November 4, 2011
NEGOTIATIONS are currently underway in a bid to secure the future of the struggling Southgate Group.
Earlier today, Car Dealer broke the news that rumours were circulated regarding the possible demise of the family-run business, with two of its franchised manufacturers telling us they believed the firm had been placed into administration.
However, the future was far from clear with some employees at the company – which operates Peugeot, Mitsubishi and Subaru dealerships across Hampshire and Dorset – telling us it was business as usual.
Car Dealer now understands from a reliable source that the Mitsubishi outlets and a joint Subaru and Peugeot site in Blandford, Dorset, have been suspended, and that talks are ongoing about the future of the business.
Southgate’s Peugeot sites are continuing to trade normally while administrators examine the company’s affairs during a ‘pre-appointment’ phase.
The source said they were alerted to the firm’s difficulties towards the end of October, and that this negotiation period could last for another two weeks. A total of 111 employees’ jobs are at risk.
Southgate’s Peugeot sites operate in Southampton, Andover, Blandford, Winchester, and the firm runs Mitsubishi franchises in Andover, Bridport, Poole and Romsey.
