ATS Euromaster to Exit UK Market, Putting Over 700 Jobs at Risk
In a significant development for the automotive sector, Birmingham-based garage chain ATS Euromaster has announced its decision to exit the UK market, with plans to close 86 service centres and put 703 jobs at risk. The major tyre and servicing chain confirmed these proposals, which involve ceasing trading in Britain entirely, marking a major shift in the industry landscape.
Details of the Closure and Sale Plans
Under the proposed exit strategy, ATS Euromaster intends to shut down 86 of its least profitable service centres across the UK. In an effort to mitigate job losses and maintain some presence, the company is in advanced talks with two potential buyers. Specifically, 35 of its 152 sites are set to be sold to Formula One Autocentres, while an additional 14 sites will be transferred to SandM Tyres, which operates under the name Elite Garages.
Despite these proposed transfers, the impact on employment remains severe. A total of 703 roles are at risk, spanning the company's head office in Aston, its call centre, and the remaining 103 locations that are not part of the sale agreements. This move represents a substantial reduction in the chain's UK footprint, which has been a key player in the tyre and servicing market for years.
Company Statements and Employee Impact
Nick Harley, the group managing director of ATS Euromaster, described the decision as a "sad and difficult moment" for the company. He emphasized that the primary focus now is on treating every employee fairly and respectfully, acknowledging that many staff members have dedicated long careers to the firm. The consultation period for the closures is expected to run until April, with sites earmarked for shutdown continuing to operate during this time.
If the plans are approved, final trading for the affected branches is scheduled for May 1, 2026. This timeline allows for a phased transition, but it underscores the urgency and scale of the restructuring. The exit from the UK market reflects broader challenges in the automotive retail sector, including economic pressures and shifting consumer demands.
Broader Implications for the UK Automotive Industry
The closure of ATS Euromaster's UK operations highlights ongoing trends in the business environment, where companies are reassessing their market positions amid financial strains. With over 700 jobs at stake, this development could have ripple effects on local economies, particularly in areas where the service centres are located. The sale of 49 sites to rivals may help preserve some employment opportunities, but the overall reduction in capacity signals a contraction in the sector.
As the consultation period progresses, stakeholders, including employees and customers, will be closely monitoring the outcomes. The move by ATS Euromaster serves as a reminder of the volatile nature of the retail and service industries, where strategic decisions can have profound impacts on communities and the broader market.
