LONDON – UK dealership group Lookers said it would close 12 sites and lay off 1,500 employees amid the coronavirus crisis.
It also said an inquiry into its operations highlighted the need to improve "some behavioral and cultural aspects" of the company.
Lookers, which in March delayed its annual results after identifying potentially fraudulent transactions in one of its segments, said its financial report will be published by the end of June.
The group’s COO, Cameron Wade, stepped down in March after just five weeks in the role, days after Lookers said it had found the suspicious transactions.
In April, the company said it expected to take a 4 million pound ($4.93 million) charge in 2019 related to the investigation. A potential merger with rival Pendragon fell apart in May, according to news reports.
Last November, Lookers' CEO and the operating chief at the time departed after the company sounded a second profit warning in just a span of a few months as demand fell in the UK car market.
Lookers is Europe's third-largest independent dealership group by revenue, according to Automotive News Europe's 2019 Guide to Europe's Biggest Dealers. It has 164 new-vehicle franchise points in the UK and represents 31 brands.