A well-known chain specializing in tires and automotive services is set to downsize and eventually exit the UK market after years of cost-saving initiatives, potentially putting over 700 jobs in jeopardy. ATS Euromaster has disclosed intentions to discontinue operations in the UK, including the closure of 86 underperforming service centers. To mitigate job losses, the company is currently negotiating with two potential buyers who have expressed interest in acquiring portions of its network.
As part of the plan, Formula One Autocentres is expected to purchase 35 out of the 152 sites, while S&M Tyres, trading as Elite Garages, will take over an additional 14 locations. Despite these proposed transfers, 703 positions remain at risk, encompassing roles at the head office in Aston, the call center, and the remaining 103 sites. The downsizing is a result of the company’s acknowledgment that its reduced size and limited geographical presence would hinder its competitiveness and sustainability as a national business.
Nick Harley, the group managing director, described the decision as a challenging and regrettable moment, attributing the move to intensified competition and escalating operational costs that have impeded the company’s ability to achieve profitability. He emphasized the company’s commitment to treating all employees fairly and respectfully, particularly those who have dedicated significant time to the organization.
Affected sites earmarked for closure will continue to operate during a consultation period expected to extend until April, with the final trading day scheduled for May 1 pending approval of the plans. The company has ensured that affected staff will receive comprehensive support packages, including access to a 24-hour assistance program and specialized assistance in securing alternative employment. Additionally, a proposal has been made to transfer 13 mobile night technicians to Tructyre, a subsidiary of the Euromaster Group focusing on mobile tire services for commercial vehicles.
