MOTOR dealership DC Cook, which has a base in York, has gone into receivership after suffering cash-flow problems for "some time", it emerged today.

Accountant Grant Thornton has been appointed administrative receiver to the Rotherham-based firm, which employs some 700 staff.

The York branch, in Lawrence Street, which deals in new Fiat and Alfa Romeo cars, as well as scooters and used cars, was referring press inquiries to Grant Thornton today.

New Fiat cars parked outside the branch were being loaded on to car transporters last night as the news broke, but Grant Thornton spokesman Simon Rothschild said all branches, including York, would continue to trade normally. The group operates 27 franchises on behalf of manufacturers such as Fiat, Alfa, Citroen and Renault, as well as Motor Solutions Limited, a web-enabled business-to-business company.

Motor Solutions is the only company in the group not in receivership.

Nigel Ruddock, of Grant Thornton, said: "DC Cook has been suffering from cash-flow problems for quite some time, reflecting the significant problems faced by the industry as a whole following a period in which it expanded rapidly.

"Our first task is to analyse the financial situation at the company in some detail and to stabilise the situation.

"DC Cook is a significant player within its industry and we believe that certainly parts of it will prove attractive to potential purchasers.

"Currently all parts of the group remain trading normally. We will be having exploratory talks with the manufacturers concerned to try to make sure that all customers' deposits on cars can be honoured."

In the year to April 30, DC Cook made pre-tax losses of £6.3 million on turnover of £266.1 million and had bank debts of more than £27 million.

Updated: 10:01 Saturday, January 20, 2001