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Birmingham Post
Birmingham Post
Business
Hannah Baker

Historic Salisbury garage and car showroom forced to close

A family-run Salisbury garage and car sales showroom established more than half a century ago has closed.

Rex Garage, which is based at The Wyndham Centre on Salisbury Business Park, appointed insolvency specialists Begbies Traynor to review the business earlier in the year.

According to Begbies, the company had struggled with the cost of new equipment, ongoing difficulties caused by the pandemic and the cost-of-living crisis.

Rex Garage was established in the mid-1960s and originally traded as a repairs garage and MOT centre. The business later bought extra premises which were converted into a used car showroom on London Road.

However, over the past five years a number of key pieces of equipment became obsolete, meaning many spare parts could no longer be sourced and had to be replaced. The investment, funded by one of the directors, resulted in significant expenditure over a short period of time, Begbies Traynor said.

Covid-19 restrictions meant the car salesroom was temporarily forced to close in 2020, though the garage remained open. With the onset of the cost-of-living crisis, the company suffered further decline in turnover as customers looked to cut back on spending.

Begbies Traynor said the company was found to be insolvent on a cashflow basis and instructions were issued to place it into liquidation.

Andrew Hook, insolvency director at Begbies Traynor’s Salisbury office, said: “The Covid-19 restrictions led to a rapid decline in people using their cars, and the government’s decision to extend MOTs during the pandemic meant that business slowed down significantly, and they were subsequently unable to make a full recovery.

“That, coupled with the investment needed in new equipment, customers facing an ever-increasing cost of living, and a downturn in sales all contributed to the failure of the business.”

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