Lookers expects £4m hit from fraud probe
Car dealership chain Lookers has completed the first part of an investigation over potential fraud at the business.
Bosses said balance sheet issues have been found across some divisions and the probe continues. It is expected to cost the business £4 million, it added.
The update came as Lookers, which has sites in the Black Country, Shropshire and Staffordshire, said it had reopened some of its forecourts, which closed during the lockdown.
Prior to the impact of the lockdown, it recorded a 4.8 per cent like-for-like fall in new car sales in the first two months of 2020, although bosses pointed out the overall UK new car market declined by 5.8 per cent over the same period.
"These are challenging times and on behalf of everyone at Lookers our first thoughts remain for those impacted by the virus and those serving on the front line," said chief executive Mark Raban.
"We are also continuing to take prudent steps, with the support of our major stakeholders, to ensure that the business returns to full operation in the best possible condition."
