STAFF at a Kidderminster car dealership have been made redundant as the firm begins to close down its operations.

CMS, which operates a franchised Vauxhall dealership in Churchfields, fell into administration in August following months of financial hardship.

It has now been confirmed that the sales and fleet operations have ceased to trade, with the maintenance and repairs service continuing to operate for a short period as it completes work in progress.

The majority of the Kidderminster firm’s 46 employees have been made redundant. A small number of staff have been retained to assist the administrators in their duties.

The business faced financial difficulties in recent months following the filing of its accounts and the qualification of its FYE 31 December 2021 audited financial statements, which impacted its ability to secure funding and led to the appointment.

Tony Wright and Rajnesh Mittal of specialist business advisory firm FRP were appointed as joint administrators to CMS in August.

The joint administrators continued to operate CMS while they explored options for the future of the business, including the possibility of a sale. However, without any prospect of a sale as a going concern the administrators moved to wind up the business’ operations.

Tony Wright, partner at FRP and joint administrator of CMS, said: “Despite efforts to find a suitable buyer to take the business forward, there was no prospect of a sale.

"With regret, this means that we have begun to close down its operations and have made the majority of staff redundant.

"Our team is working with impacted staff in making claims to the redundancy payments service.”