Mercedes-Benz Retail Group in the UK has parted with its remaining dealerships and discontinued operations after enduring prolonged downsizing efforts and financial losses. The group’s latest annual accounts indicate it has been addressing remaining debts to shift to a dormant status.
The documents submitted to Companies House reveal that the Mercedes-owned entity has sold off its remaining leasehold properties and collected its remaining trade and other receivables. The directors do not anticipate any further business operations to take place.
Confirming the recent developments, director Wolfgang Pipperger stated that during the period, the company finalized the sale of its remaining dealerships, marking the end of its trading activities.
Since 2021, Mercedes has been preparing to separate from the group, dedicating the subsequent years to selling locations and scaling down its operations. The decision followed a series of pre-tax losses, including £35 million in 2019 and £20.9 million in 2020.
Although the losses have decreased over time, the company remained under financial strain, with the most recent accounts for 2023 revealing a pre-tax loss of £3.66 million.
Additionally, a Mercedes-Benz dealership in Bradford, which had been operational for 70 years, concluded its operations last year. The dealership declared its closure, with trading ceasing on October 31, marking the end of a long-standing location.
The closure occurred as dealership group Stratstone undertook the process of shutting several of its locations just months after its acquisition by Lithia Motors.
Despite the remarks, no formal submission has been made to Companies House to confirm the group’s cessation.
According to Car Dealer, the lately published records show that Mercedes-Benz Retail Group generated £742.52 million in the previous year, with the decline attributed to a reduced number of dealerships.
The reduction in operations was also evident in the workforce, which decreased from an average of 1,325 employees to 781. Similarly, staffing expenses were cut to £46.7 million compared to £60 million in the prior accounting period.
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