Gateshead automotive retailer saves jobs with franchise acquisition deal

A North East automotive retail company has announced the acquisition of three franchises from Leven Cars Group Limited.

Vertu Motors, which is based in Gateshead, purchased a multi-franchise dealership in Edinburgh which comprises of Kia, Suzuki and Mitsubishi. The purchase has secured more than 50 jobs, following a trading loss prior to the deal.

Vertu expects the acquisition to contribute a small loss in the first full year of ownership, the year ending 28 February 2021, and to be earnings enhancing thereafter.

The purchase adds to Vertu’s existing franchises: Nissan, Ford, Mazda, Peugeot and Hyundai.

Robert Forrester, CEO of Vertu said: “This acquisition out of administration represents value, and brings the Kia, Suzuki and Mitsubishi franchises with growth prospects to the Group.

“The addition of these outlets augments the group’s representation in Scotland under the Macklin Motors brand and expands our operational footprint in Scotland.

“In the process, we have also secured over 50 jobs which were under threat.

“The deal goes to the heart of the group’s strategy to continue to grow a significantly scaled franchised dealership group and to allocate capital in order to generate increased cash flows and returns for shareholders in the medium term.”