News release

Administrators appointed to CC< Automotive Group Limited, UK Car Group Limited and Pennine Metals A Limited t/a The Carcraft Group

Thursday 30 April, 2015

Daniel Smith and Joe McLean, both Partners at Grant Thornton UK LLP, have been appointed as administrators to the above Companies trading as Carcraft, the multi-site used car supermarket. This follows an appointment as administrators to Pennine Metals C Limited on 16 April 2015.

The Group's finance arm, All In One Finance Limited, which is regulated by the Financial Conduct Authority (FCA), is expected to be placed into administration shortly, once FCA clearance has been obtained.

Headquartered in Rochdale, Carcraft is the UK's seventh largest second hand dealership chain with an annual turnover of £120m, 500 employees across 10 sites nationwide. The Group sells over 12,000 used vehicles per annum at an average price of c£9,000 per vehicle.

The Group operates in a competitive market and has suffered from poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet all of which have hindered investment. The Group also has legacy PPI claims.

The Group is heavily loss making recording losses of c£8m per annum for a number of years.

Tarun Mistry, Automotive Advisory Partner at Grant Thornton, commented:

"The business model has failed to evolve with the changes in the used vehicle remarketing sector and regulatory environment. Overall, this sector is still vibrant and represents a significant opportunity for the appropriate operating model to benefit from the growing and changing used vehicle market."

A sales process has been on-going since February 2015 which was ultimately unsuccessful.

Carcraft will cease trading and all employees have been informed and have been made redundant. All employees were paid on 30 April 2015 for the month of April.

Due to the nature of the situation, Carcraft customers with Drive Happy Plans (DHP), a warranty, MOT, servicing and roadside assistance product will no longer be covered and all elements of the policy will not be fulfilled by Carcraft. Communication to this effect will be issued to customers today.

Daniel Smith commented:

"With great regret a conclusion was reached that it is no longer viable to keep Carcraft in operation. In order to prevent further losses it has been agreed with management and creditors to cease operations with immediate effect.

"Carcraft will retain a skeleton staff to assist with the realisation of assets. In the event there are any approaches from interested parties post appointment we will react to these accordingly. It is our intention to explore with an alternative provider whether they could provide the roadside assistance element of the DHP cover at a favourable rate to former customers."

Any queries should be directed to: carcraft@uk.gt.com

A customer helpline has been set up at Head Office:

0800 923 9495

Further information regarding the Drive Happy Plan will be issued through the Carcraft website: www.carcraft.co.uk

For further press enquiries please contact:

Emma Jack / John Heredea

Grant Thornton PR team

Notes to editors

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DHP RELATED FAQS

I have a DHP, can I cancel my product and get a refund?

Unfortunately, due to the administration of Carcraft, it is not in a position to refund customers. The administrators are currently investigating what is possible with regard to the future position of the DHP.

Where do I get my car serviced?

Unfortunately, due to the administration, Carcraft is not in a position to service your car. You will have to make alternative arrangements.

Where do I get my car MOT'd?

Unfortunately, Carcraft is not in a position to undertake an MOT on your car. You will have to make alternative arrangements.

If I get a service or MOT done at a local garage, will I be reimbursed?

Due to the administration of Carcraft, it is not able to reimburse customers for any work undertaken by other garages.

If I break down, who do I call?

Unfortunately, due to the administration of Carcraft, your road side assistance will no longer be honoured.

Can I submit a claim for costs I incur to have MOT, services and warranty work done at an alternative garage, or if I obtain road side assistance elsewhere?

Your costs in relation to sourcing an alternative to the DHP will be an unsecured claim against Carcraft. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

Can I bring my car back?

The administrators are not in a position to refund customers who have paid for a car in full.

I have a finance loan to pay for my DHP, can I cease payments?

The administrators of Carcraft are not in a position to comment in respect of these loans as they were not provided by Carcraft. Please contact your finance provider.

I am waiting to be reimbursed for repairs already carried out at another garage; will I receive this?

Unfortunately, due to the administration of Carcraft, reimbursements are not possible.

Who will pay for repairs I have paid for at another garage?

Assuming the terms of your DHP allowed such repairs to be reimbursed, your costs in relation to repairs at another garage will be an unsecured claim against Carcraft. It is highly unlikely that you will receive a substantial proportion of this claim from the Carcraft administration.

My car is currently in a Carcraft garage, can I collect my car?

Yes. Please contact the Carcraft site to arrange collection of your car.

Are the administrators doing anything to obtain an alternative DHP for us?

The administrators are seeking to obtain alternative options for customers, however this is likely to be at the customers' cost. Communication will be made to DHP customers should an alternative be available.

CUSTOMER FAQS REGARDING CAR PURCHASES

Can I bring my car back for a refund?

The administrators are not in a position to refund customers who have paid for a car in full.

If a customer has paid a deposit on a credit card and wishes to back out of the car purchase and return the car (or has not picked up the car), please contact the administrators to discuss your position. You should contact your credit card provider regarding your deposit.

If a customer has paid a deposit in cash and wishes to back out of the car purchase and return the car (or has not picked up the car), please contact the administrators to discuss your position. It is, unfortunately, unlikely that the administrators will be able to provide a refund.

I have paid for my car in cash, can I collect my car?

Please contact the administrators with details of your vehicle registration number and evidence of payment, to discuss your position.

I have paid for my car on finance, can I collect my car?

Please contact the administrators with details of your vehicle registration number and your finance documents, to discuss your position. Payment must have been received from your finance company to enable collection.

CONTACT DETAILS FOR THE ADMINISTRATORS

Please direct queries to:

carcraft@uk.gt.com

Please include in the subject of your email the Vehicle Registration Number and relevant Carcraft site location

Please also continue to monitor the website for updates.

www.carcraft.co.uk

The Administrators act as agent and without personal liability