Huge blow as drivers' go-to retailer with 400 branches to shut site in weeks
DRIVERS are facing a major blow as a popular retailer with 400 branches is set to close one of its sites in just a few weeks.
Halfords confirmed it will pull down the shutters on its Tweedmouth garage for good on June 5.
Motorists will now have to drive around 45 minutes to reach their nearest branch in Haddington.
Halfords sent their Club Members emails informing them of the closure.
"Your McConechys Tweedmouth garage is moving. We're still here for everything you need," they said.
The major retailer added: "Our team is ready to welcome you to your local Haddington garage offering the same trusted services and expert care."
Customers have taken to social media to vent their sadness about the closure.
In a Facebook post, this user wrote: "Wow this is where I got my car serviced and MOTed, I must say they've provided excellent service to me in the town, and I am a Halfords Club Member, and Haddington will be a bit too far to travel to for the same trusted service and expert care."
"Just had an email to say Halfords are closing, hope all the staff get reemployed soon," another added.
While a third commented: "That's a real shame. I use the store regularly."
The news comes as the motoring industry faces wider challenges, such as the imminent closure of a huge car dealership with over 91,000 vehicles currently on sale — putting over 100 jobs at risk.
'FACING THE RISK'
The German online used car marketplace Heycar has suffered heavy losses since its launch in the UK in 2019, when it set out to rival Auto Trader and Motors.
Now, its majority shareholder, Volkswagen Financial Services (VWFS), has decided to pull the plug, leaving more than 126 employees across the UK, Germany, and France facing the risk of losing their jobs.
A large proportion of Heycar's employees are based in the UK, and the company is expected to wind down its UK operations shortly after its closure in Germany, which is expected in mid-May.
A VWFS spokesperson confirmed, 'We expect we will have to let go of a large portion of Heycar's employees.'
Despite the closure, VWFS is planning to carry forward Heycar's innovations.
In a statement, VWFS UK said: 'Volkswagen Financial Services (VWFS) UK is pleased to announce the launch of a new subsidiary that will integrate the technology and expertise developed by Heycar.
'Heycar has been a pioneer in the online used car marketplace and, despite the decision to wind down their operations, the valuable insights and digital solutions developed so far will play a crucial role in the future of VWFS UK, as we continue to explore new ways to drive growth and innovation in the automotive e-commerce space.
'We are anticipating that specialists and resources from Heycar will be joining the new subsidiary, ensuring we have the necessary knowledge and skills to effectively utilise and develop the technology we're acquiring.'
Volkswagen Financial Services was the company's largest shareholder, holding a 78 percent stake, followed by Volkswagen at 13 percent and Renault at 9 percent.
Why are so many car dealerships closing down?
By Summer Raemason
According to Business Rescue Expert there are multiple reasons why car dealerships are folding across the UK.
The first major factor is rising online car sales which are beating in-person sales at dealerships.
With an extensive range of comparison and second-hand sites to choose from, may car buyers don't even step foot into a dealership anymore.
Secondly, the actual cost to physically run the sites has soared.
Rent, wages and energy bills have all been increasing for roughly the past five years, putting many out of pocket.
Car manufacturing across the globe was also hit by a semiconductor chip shortage in 2022 which made it difficult to produce new motors.
The high demand with limited supply created a backlog, which although has eased, is still having an impact on the industry.
A third reason for recent closures is the shift to electric cars.
They are becoming more popular, given the Government initiative to be Net Zero in 2050.
The industry is also affected when companies merge or are bought by rivals.
This may lead to some independent names falling victim to the o
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