A BELOVED car dealership franchise has shut two of its showrooms and cut 40 jobs amid contract frustrations and issues with roadworks.
Both sites have only been operating for around five years and held exclusive deals with a major manufacturer in their respective areas.
Ken Brown Motors, which has been trading since 1991, closed down the two branches yesterday saying that it was “no longer viable” to run them.
The firm already represents Kia in Stevenage, Hertfordshire, and Harlow, Essex, but also enjoyed a deal with Hyundai.
That was until the two sides were unable to reach a written renewal agreement, resulting in the closure of the chain’s Hyundai dealerships in Letchworth and Richmond.
The statement added that roadworks outside the Richmond site in South London had caused access issues for staff and reduced customer footfall.
The hunt for a new site in the area had been unsuccessful, leaving permanent closure as the only option.
This is not the outcome any of us would have wanted
Hyundai UK
Between the two showrooms, 40 jobs were cut when they closed their doors for the final team yesterday evening.
Managing Director Jon Taylor said: “We’ve had a good relationship with Hyundai and they’ve been very supportive during the road closure.
“However, the uncertainty at both sites means that it is no longer viable for us.
“We continue an excellent partnership with Kia in Stevenage and Harlow and will seek new opportunities to fill the gap.
“It is with great sadness that 40 members of the team at the two sites will be made redundant as a result of the closure.”
He ended by thanking the teams working at the two dealerships, including employees of over 20 years, for the “support they have given” the business.
A Hyundai spokesperson added: “Hyundai Motor UK is saddened by the closure of the Ken Brown Motors sites in Richmond and Letchworth.
“We have worked very closely with the business over recent years to support its ongoing inclusion within our evolving retail network and very much wanted it to be a partner for the future.
“Unfortunately, as a result of the extenuating circumstances that its business has faced, it has confirmed that it is no longer able to continue operating the sites.
“This is not the outcome any of us would have wanted.”
The manufacturer is now seeking a new dealership partner to take over the sites “with as little disruption as possible” and will be contacting UK customers imminently.
It comes in contrast to the news that another popular franchise would be opening seven new dealerships in the near future.
