A MULTI-franchise car dealership may go into administration after poor trading.

City Motor Holdings Ltd, who have offices in Reading, Newbury and Basingstoke yesterday (Wednesday September 14) closed two dealerships with immediate effect and may have to sell off its other businesses.

The cash-strapped management board are trying to sell off Gowrings Ford and City Peugeot, both based at Basingstoke Road in Reading, Newbury Motor Park and Basingstoke along with City Kia in Newbury.

A spokesman for the group said there was little they could say whilst negotiations were on going.

"We are in talks with third parties that may lead to the sale of the remaining dealerships as a going concern, and if a buyer can be found it will give us the best chance of preserving as many jobs as possible," he said.

"There are a number of parties with whom we are in discussions, which is encouraging."

City SEAT and City Skoda's Basingstoke sites stopped trading on Tuesday, September 13.

City Motor Holdings say they are still working with manufacturers to minimise disruption to customers.

At the time of writing the company's website www.citymotors.co.uk has been suspended.

The company also owns City Citroen, City Honda, City Suzuki, and City Motors Part Exchange Centre based in Basingstoke.