By Jonathan Davies

Second-hand car dealership Carcraft has gone bust, resulting in around 500 job losses.

The company, which is based in Rochdale, has 10 showrooms around the UK.

Administrators Grant Thornton said Carcraft's "poor market reputation, lack of investment, a high cost base, expensive loan note financing and an insolvent balance sheet" led to its downfall.

The company is understood to be making an annual loss of around £8 million.

Customers have been warned that policies, including things like breakdown cover will no longer be valid.

Daniel Smith, partner at Grant Thornton, said: "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."