Lookers
{{Short description|British car dealership}}
{{Infobox company
| name = Lookers
| logo = Lookers logo.svg
| type = Privately owned company
| foundation = 1908
| location = Altrincham, UK
| key_people = Paul Van der Burgh (Interim Non-Executive Chair)
Mark Raban (CEO)
| industry = Car sales
| products = New and used cars and vans
| revenue = {{increase}} £4,300.9 million (2022){{cite web |url=https://www.lookersplc.com/investors/|title=Annual Report 2022|publisher=Lookers |access-date=4 July 2023}}
| operating_income= {{decrease}} £108.9 million (2022)
| net_income= {{increase}} £73.9 million (2022)
| num_employees = 6,500
| parent =
| homepage = {{url|https://www.lookers.co.uk/}}
| footnotes =
}}
Lookers is a British car dealership chain in the United Kingdom and Ireland. It represents multiple brands, and is based in Altrincham. It was listed on the London Stock Exchange until it was bought by Global Auto Holdings, a sister company of Alpha Auto Group, for £465.4m in 2023.
History
File:Lookers Nissan Gateshead.jpg
The Lookers Group was established in 1908, by John Looker. It was based in Manchester, and dealt with the sale of bicycles, parts, accessories. In 1910, the business joined forces, to create Lookers Ltd. Until World War I, Lookers Ltd was primarily a Ford dealer, which thrived to such an extent that, in 1911, the garage in Hardman Street had to be completely rebuilt, to accommodate the business generated by Ford.{{cite web|url=http://www.lookers.co.uk/about-us/|title=About Lookers|work=lookers.co.uk|access-date=22 August 2015}}
In 1918, the business was appointed a distributor of Austin Motor Company. It continued to grow throughout Lancashire and Cheshire, through the acquisition of a number of garages. Lookers and Austin became very closely associated such that the slogan "Lookers is Austin" lasted for many years. The business continued to prosper until World War II, in 1939.
In 1973, the group's headquarters were transferred to Chester Road in Timperley and the company became a listed company on the London Stock Exchange. Issuing shares on the stock exchange created extra funds, which then enabled the company to take its first major steps towards expansion.
Lookers strengthened its Vauxhall dealerships, with the acquisition of Braid Group, a major dealership group based in Liverpool, for £3 million. The purchase was completed in 1983. By December 1984, the first full year including Braid, the company's sales topped £150 million.{{cite web|url=http://www.manchestereveningnews.co.uk/business/business-news/lookers-in-the-fast-lane-1003902|title=Lookers in the fast lane|author=men Administrator|date=13 September 2007|work=men|access-date=22 August 2015}}
In 1989, Lookers acquired SMAC Continental, based in South East England, for £14.7 million. That purchase also added SMAC's dealerships of Mercedes-Benz to Lookers portfolio of manufacturers.{{cite web|url=http://www.am-online.com/news/2002/1/4/lancaster-buys-lookers-mb-site-for-51m/3106/|title=Lancaster buys Lookers MB site for £5.1m|date=4 January 2002|work=am-online.com|access-date=22 August 2015}} In February 1996, Lookers bought Charles Hurst Group, a dealership in Northern Ireland.{{cite web|url=http://www.am-online.com/news/2007/7/13/insight-charles-hurst-lookers/15300/|title=Insight: Charles Hurst/Lookers|date=13 July 2007|work=am-online.com|access-date=22 August 2015}}
Meanwhile, Lookers began an investment program, which included the opening of a £4.5 million dealership in Stretford in 1999, for sales of Suzuki, SEAT and Mazda. Investments totalling £20 million, in order to open new showrooms in Chester, Liverpool, and Oldham in 2001. The company added a number of existing dealerships as well, such as 452 Birmingham and Spekehall Vauxhall, bought from Vauxhall and Rystar Aston and Selly Oak Vauxhall, bought from Ryland Group.{{cite web|url=http://www.tuugo.co.uk/SiteViewer/0300003489352?url=http%3A%2F%2Fwww.business-sale.com%2Facquisitions%2Fyear-2002%2Fmonth-february-news-1.html|title=Lookers has acquired 452 (Birmingham)|publisher=Business Sale Report|date=21 February 2002|access-date=22 August 2015}}
In August 2002, Lookers further strengthened its Vauxhall network, with the purchase of Elt Brothers, based in Birmingham, for £900,000.{{cite web|url=http://www.business-sale.com/acquisitions/article/lookers-has-acquired-elt-brothers-the-b-18843.html|title=Lookers has acquired Elt Brothers, the B...|work=business-sale.com|access-date=22 August 2015}}
In May 2002, Lookers teamed up with Morrisons, in an experiment to sell cars from Internet displays in three supermarkets of Morrisons. By 2003, Lookers' network of dealerships had topped 90. The company had built up an extensive network, throughout the United Kingdom. In February 2003, Lookers completed its United Kingdom presence, with a move into Scotland.{{cite web|url=http://www.birminghampost.co.uk/business/lookers-paints-rosy-picture-year-3999331 |title=Lookers Paints Rosy Picture for Year Ahead|date=22 March 2005|work=Birmingham Post|access-date=22 August 2015}} Through Hurst, it acquired JN Holdings, better known as the operator of Taggarts Motor Group in Glasgow and Motherwell.{{cite web|url=https://www.scotsman.com/news/transport/consumer-crunch-dents-new-car-sales-lookers-1655967|title=Consumer crunch dents new-car sales for Lookers|date=29 October 2011|publisher=The Scotsman}}
In August 2004, Lookers made another significant acquisition, this time boosting its presence in the United Kingdom aftermarket car parts circuit, when it bought FPS Distribution.{{cite web|url=http://www.just-auto.com/news/parts-warehouse-distributor-fps-acquired-by-lookers_id69445.aspx |title=Parts Warehouse Distributor FPS Acquired by Lookers|publisher=Just Auto|date=22 July 2004|access-date=22 August 2015}}
Other dealerships acquired through December 2004 included Savoy Honda in Warrington; Vauxhall dealerships in Lisburn and Portadown; Darlington Volkswagen; another Volkswagen dealership in Northallerton; and one dealership of Saab in Chester. In February 2005, Lookers added a used car "supermarket" Bristol Trade Center, paying £8.5 million.{{cite web|url=https://www.telegraph.co.uk/finance/markets/questor/2912488/The-Questor-column.html|title=The Questor column|author=Harry Wallop|date=22 March 2005|work=Telegraph.co.uk|access-date=22 August 2015}}
In December 2005, Lookers made a bid for larger rival Reg Vardy. However, Pendragon PLC offered a counter bid, which succeeded after Lookers decided it could not raise its bid. During the bidding battle for Reg Vardy, Pendragon made an unsuccessful hostile bid for Lookers.{{cite web|url=https://www.telegraph.co.uk/finance/2934624/Lookers-bid-to-foil-Pendragon.html|title=Lookers bid to foil Pendragon|author=Edward Simpkins|date=19 March 2006|work=Telegraph.co.uk|access-date=22 August 2015}} In October 2007, Lookers acquired Dutton Forshaw, another dealership, from Lloyds TSB for £60 million.{{cite web|url=http://www.am-online.com/news/2007/10/3/lookers-acquires-dutton-forshaw/15778/|title=Lookers acquires Dutton Forshaw|publisher=AM online|date=5 October 2007|access-date=22 August 2015}}
The company went on to buy Lomond Audi Group in July 2012,{{cite web|url=http://www.motortrader.com/motor-trader-news/automotive-news/lookers-acquires-lomond-audi-group-scotland-05-07-2012|title=Lookers acquires Lomond Audi Group|author=Curtis Hutchinson|work=Motor Trader Magazine - Motor Industry: News - Jobs - Awards|access-date=5 December 2015}} Shields Motors, and opened Volkswagen Van Centre Glasgow in May 2013,{{cite web|url=http://www.heraldscotland.com/business/13105022.Lookers_dealership_in___8_8m_takeover_of_Shields_car_firm/|title=Lookers dealership in £8.8m takeover of Shields car firm|work=Herald Scotland|access-date=5 December 2015}} and Colborne Group in March 2014.{{cite web|url=http://www.am-online.com/news/2014/3/11/lookers-acquires-colborne-garages-for-336m/34629/|title=Lookers acquires Colborne Garages for £33.6m|date=11 March 2014|access-date=5 December 2015}}
On 3 September 2015, Lookers acquired Tyneside based Benfield Motor Group for £87.5 million and expanded to become the third biggest car dealership in the country. The deal saw Lookers plc expand further into the North East and Cumbria. Benfield brands include Nissan, Renault, Volkswagen, Škoda, Kia, Honda, Hyundai, Lexus, Toyota and Ford.{{cite web|url=http://www.chroniclelive.co.uk/business/business-news/benfield-motor-group-acquired-lookers-9980550|title=Benfield Motor Group acquired by Lookers plc for £87.5m in cash|author=Robert Gibson|date=3 September 2015|work=nechronicle|access-date=28 September 2015}} The company headquarters moved to Altrincham in July 2017.{{cite web|url=https://www.motortrader.com/motor-trader-news/automotive-news/lookers-move-new-hq-manchester-2017-12-07-2017|title=Lookers to move to new HQ in Manchester in 2017|publisher=Motor Trader|date=12 July 2017|access-date=12 July 2019}} In 2018, Lookers acquired Stockton-based Jennings Motor Group. {{cite web |title=DEALERSHIP GROUP SNAPPED UP BY LOOKERS |url=https://www.insidermedia.com/news/north-east/lookers-drives-forward-with-north-east-expansion |website=Insider Media |access-date=31 March 2022 |date=17 September 2018}}
Lookers appointed Mark Rabban as CEO in February 2020.{{cite web |title=Lookers appoints Mark Raban as CEO |url=https://www.motortrader.com/motor-trader-news/automotive-news/lookers-appoints-mark-raban-ceo-cameron-wade-coo-05-02-2020 |website=Motor Trader |access-date=31 March 2022 |date=5 February 2020}} Following the outbreak of Covid-19, in March 2020, Lookers temporarily closed all its dealerships with immediate effect in order to minimise the impact of the virus to both its customers and staff members in line with government guidance.{{cite web |title=Lookers announces temporary closure of all trading locations |url=https://www.motortrader.com/motor-trader-news/automotive-news/lookers-announces-temporary-closure-trading-locations-23-03-2020 |website=Motor Trader |access-date=31 March 2022 |date=23 March 2020}} The beginning of 2022 saw Constellation – Europe’s biggest car seller – acquire a 20% stake in Lookers, totalling 78m shares.{{cite web |title=Constellation Automotive acquires 19.9% stake in Lookers PLC |url=https://www.am-online.com/news/dealer-news/2022/01/31/constellation-group-acquires-199-stake-in-lookers-plc |website=AM Online |access-date=31 March 2022 |date=31 January 2022}} In March 2022 Lookers Plc sold its London Battersea site for £28m in a sale and leaseback deal with property group Urban Logistics REIT.{{cite web |title=Car dealership Lookers sells Battersea site for £28m |url=https://www.cityam.com/car-dealership-lookers-sells-battersea-site-for-28m/ |website=City AM |access-date=31 March 2022 |date=28 March 2022}}
In April 2022, Lookers transformed its Manchester Headquarters into a collaboration hub for its hybrid teams to meet.{{cite web |title=Lookers refurbs Manchester HQ to create 'collaboration hub' |url=https://www.motortrader.com/motor-trader-news/automotive-news/lookers-refurbs-manchester-hq-create-collaboration-hub-13-04-2022 |website=Motor Trader |access-date=14 April 2022 |date=13 April 2022}}
In June 2023, Global Auto Holdings, a sister company of Alpha Auto Group, which is an Ontario-based car dealership chain, made an agreed offer to acquire the company at a price which valued it at £465.4m.{{cite news|url=https://www.independent.co.uk/business/lookers-agrees-halfbillion-pound-takeover-by-canadian-firm-b2360648.html|title=Lookers agrees half-billion pound takeover by Canadian firm|date=20 June 2023|newspaper=The Independent|access-date=4 July 2023}}{{cite news|url=https://www.am-online.com/news/acquisitions-and-deals/2023/06/20/global-auto-holdings-makes-4654m-bid-for-lookers|title=Lookers board recommends £465.4m takeover bid from Global Auto Holdings|date=20 June 2023|newspaper=AM Online|access-date=29 September 2023}}{{Cite web|url=https://www.autonews.com/dealers/alpha-auto-group-finalizes-842m-deal-uks-lookers-group|title=Alpha Auto Group finalizes $842M deal for U.K.'s Lookers group | Automotive News}}
Operations
Lookers plc operates a national network of car dealerships, featuring a wide range of car manufacturers, including the volume brands Vauxhall and Renault. The company also has dealerships for a number of high end manufacturers, including Ferrari in Northern Ireland, and Jaguar in Northern Ireland and Scotland. The company also sells agricultural vehicles, equipment and machinery, and operates the United Kingdom's leading wholesale auto parts distributor, FPS Distribution.{{cite web|url=http://www.am-online.com/news/2015/3/30/lookers-car-parts-business-makes-uk-history-with-airborne-drone-delivery/38174/|title=Lookers' car parts business FPS makes UK history with airborne drone delivery|date=30 March 2015|work=am-online.com|access-date=22 August 2015}}
Investigation
In June 2019, the company announced it would be investigated by the Financial Conduct Authority (FCA) over its sales processes from 2016 to 2019. In December 2018, the company completed an independent review that found control issues with the group's sale processes. The review was shared with the FCA.{{cite news |last1=Dines |first1=Tom |title=Lookers under FCA investigation |url=https://www.investorschronicle.co.uk/tips-ideas/2019/06/26/lookers-under-fca-investigation/ |access-date=9 June 2020 |work=www.investorschronicle.co.uk |date=26 June 2019 |language=en}} Just over a week later, chief financial officer Robin Gregson left and was succeeded by Mark Raban.{{cite news |title=Car dealership Lookers' finance chief to step down |url=https://uk.reuters.com/article/uk-lookers-cfo/car-dealership-lookers-finance-chief-to-step-down-idUKKCN1U01IK |archive-url=https://web.archive.org/web/20190705152947/https://uk.reuters.com/article/uk-lookers-cfo/car-dealership-lookers-finance-chief-to-step-down-idUKKCN1U01IK |url-status=dead |archive-date=July 5, 2019 |access-date=9 June 2020 |work=Reuters |date=5 July 2019 |language=en}} In November 2019, chief executive Andy Bruce and chief operating officer Nigel McMinn resigned.{{cite news |title=Lookers CEO quits amid FCA probe as sales slump below expectations |url=https://www.cityam.com/lookers-ceo-quits-amid-fca-probe-as-sales-slump-below-expectations/ |access-date=9 June 2020 |work=CityAM |date=1 November 2019}}
In March 2020 the company delayed the announcement of its results after the discovery of "potentially fraudulent transactions".{{cite web|url=https://www.auto-retail.co.uk/agenda/lookers-delays-results-on-potentially-fraudulent-transactions/|title=Lookers delays results on "potentially fraudulent transactions"|publisher=Auto Retail|date=10 March 2020|access-date=11 March 2020}} In June 2020, Lookers announced that it will cut out 1,200 jobs and sell or reorganize 12 sites in order to save around £50 million.{{cite news|url=https://www.ft.com/content/78d1da83-a42a-467f-956d-6231276ca5fb|title= Aston Martin and Lookers cut thousands of jobs as UK car sales slump|work=Financial Times|author=Peter Campbell, Philip Georgiadis, Sarah Provan|date=4 June 2020|access-date=7 June 2020|location=London}} The company discovered fraudulent transactions, misstatement in debtor balances and false expenses claims at one of its divisions. The investigation was extended across all its operating divisions.{{cite news |title=UK's Lookers signals shares suspension; auditor Deloitte resigns |url=https://www.reuters.com/article/us-lookers-auditor/uks-lookers-signals-shares-suspension-auditor-deloitte-resigns-idUSKBN23F0SO |access-date=9 June 2020 |work=Reuters |date=8 June 2020 |language=en}}
In March 2021, the FCA investigation into Lookers was closed, with the FCA concluding that it would not be fining the company for any breaches. However, the investigation highlighted concerns relating to "the historic culture, systems and controls" at Lookers.{{cite web |title=Lookers avoids sanctions as FCA closes investigation into 'possible mis-selling' |url=https://www.am-online.com/news/dealer-news/2021/03/02/lookers-avoids-sanctions-as-fca-closes-investigation-into-possible-mis-selling |website=AM Online |access-date=31 March 2022 |date=2 March 2021}}
References
{{reflist}}
External links
- [http://www.lookers.co.uk Official website]
{{Automotive industry in the United Kingdom}}
Category:Auto dealerships of the United Kingdom
Category:British companies established in 1908