Lookers has announced that it will close 12 dealerships and make 1,500 redundancies.
This is part of a restructuring plan to deliver annual savings of approximately £50m.
It is estimated that the restructure will be completed in the second half of 2020.
Following these closures the Group will operate from a portfolio of 136 dealerships.
It also announced that the Grant Thornton fraud investigation is now nearing completion.
Grant Thornton has produced a draft report that is now under review and verification by the Board ahead of the final report. The draft report is also with the Auditors for review in the context of the 2019 audit opinion.
A further update will be provided once the final findings of the investigation are known.
Mark Raban, chief executive officer, said: “We are pleased to have reopened our dealerships and have been careful to do this in a way that is safe for our customers and colleagues. At the same time, we are having to reflect on the outlook for the Group and how we must adapt to ensure a positive future in what is likely to remain an uncertain economic and industry environment.
“Against this backdrop we have taken the decision to restructure the size of the Group’s dealership estate to position the business for a sustainable future, which regrettably means redundancy consultation with a number of our colleagues. This has been a very difficult decision and we will be supporting our people as much as possible throughout the process.
“We have used the time as the business has been closed to adapt and evolve to meet changes in consumer behaviour, not just for a post COVID-19 environment, but also to enhance our digital offering and the trend towards electrification.
“We will also ensure that our systems and processes are reliable and robust enough to position us as a leading UK motor retailer. There is still a lot more work to do, but we have the determination, platform and brand partnerships to take the business forward.”