UK-based used car dealership Flow Motors LTD has entered into voluntary liquidation, a month after London’s largest used car dealership Cargiant said it would be closing
A UK-based used car dealership has entered voluntary liquidation after owing tens-of-thousands of pounds.
The dealership, Flow Motors LTD, has been operating in Swindon since 2019. But after a meeting this month, it was decided that the business should be wound up. Tauseef Rashid of Qimzen Advisory has been appointed to oversea the liquidation.
Liquidation is the legal process through which a business is dissolved. This typically involves selling the company’s assets to raise funds, which are then used to settle debts owed to creditors and shareholders.
As of March 31, 2025, the Flow Motors had one employee, £9,561 in assets and £6,674 owed to creditors, which was due within the following year, according to documents from Companies House.
Capital and reserves were £2,887, but a filing from May showed that a total of £62,517 was owed to unsecured creditors.
Barclays Bank is the largest creditor listed in the filing, being owed £50,000.
Companies House is owed £3,750, the Financial Conduct Authority £3,300, Oyster Risk Solutions £3,000, AutoTrader £1,822 and BT £645.
The automotive industry has come under increased strain as customers have been more cautious about purchasing vehicles. In addition, the rising fuel price has reduced customer’s disposable income and could push a move to the use of public transport over private vehicles.
Last month, it was reported that London’s largest used car dealership Cargiant would be closing. Its chiefs said that the business was simply “no longer commercially sustainable”.
Managing Director of AA Cars, James Hosking, told the Express: “The closure of another used car dealer underlines the level of pressure across the market right now, and the number of closures we’re seeing reflects how persistent those pressures have become.”
“This isn’t about demand disappearing, but about a market that has become more competitive, more price-sensitive and less predictable. Dealers are having to be sharper on pricing, more disciplined on stock, and more efficient across their operations.”
“This is less about dealers being unable to sell cars and more about how the dynamics of demand have shifted.”
“There is still demand from buyers, but people are more cautious and more price-conscious than they were a few years ago, often taking longer to commit and placing greater emphasis on value.”
The liquidation of Flow Motors is the latest in a long list of closures.
Last month, liquidators were appointed to a UK metal manufacturer that has operated for close to 70 years. Wragg Bros., a manufacturer of steel tubes, pipes, hollow profiles and related fittings, were appointed David Farmer and Lloyd Biscoe as liquidators on April 16.
Just days earlier delivery services firm Quiver Delivery LTD had liquidators appointed following a torrent of furious reviews targeting its service. Ian Michael Rose and Paul Mallatratt, of Abbey Taylor Jones Limited, were appointed as liquidators on April 13.
