7th Sep 2020 14:03
(Alliance News) - Pendragon PLC on Monday said it has agreed to sell its Los Angeles dealership for Jaguar and Land Rover cars for GBP15.8 million in cash, as the coronavirus pandemic has disrupted car sales.
The motor retailer - which operates the Evans Halshaw and Stratstone dealerships, and the Quickco and Car Store used car supermarkets - said it will sell the trade and assets of its Hornburg Jaguar and Land Rover motor vehicle dealership in the southern California city to privately owned dealership Triunity Automotive Group LLC.
As at December 31, 2019, the gross assets being sold amounted to GBP27.4 million and the profit prior to central costs totalled GBP300,000.
Proceeds of the sale will be used by Pendragon for general corporate purposes.
At the end of July, Pendragon had said it would axe 1,800 jobs and shut 15 dealerships as part of plans to make its operations "leaner and more sustainable".
The job cuts are part of a business review started by the company before the Covid-19 pandemic, which further reduced demand.
Shares in Pendragon were up 1.5% in London on Monday afternoon at 8.83 pence each. They are down 32% so far in 2020.
By Tapan Panchal; [email protected]
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