The Michelin-owned company said the move was part of a wider review of its operating model
ATS Euromaster wil be closing 86 branches across Britain putting 400 jobs at risk.
According to a report from Fleet News, in February, the British garage firm revealed it had earmarked a number of its service centres for closure blaming overcapacity, increasing costs and sluggish growth. The branches earmarked for closures equated to a third of its overall UK network. It is not known which locations are affected by the move, although garages across the country have started pulling down shutters for good with closures currently being seen in Plymouth, Exeter and Newton Abbot.
Other closures across the UK have also been reported in Brecon, Macclesfield and Carlisle, as well as in Horsham, Worthing, Crawley, Poole and Lymington. The company – which is owned by Michelin – said the move was part of a wider review of its operating model.
In a statement, an ATS spokesperson said: “In a UK automotive aftermarket context of overcapacity, increasing costs and sluggish activity and growth. ATS Euromaster intends to review its current operating model and has put in place a proposal to close non profitable service centres. Employees impacted by this proposal are under consultation. In the meantime, our priority is to provide them with the best level of support as possible.”
The spokesperson noted that theclosures would not “impact the high quality of services that we offer to our customers” adding: “We intend that it enables us to concentrate our efforts on strategic levels for sustainable development, including services around ATS mobile capabilities and the shaping of a franchise model already successfully developed in several countries.” Before the closures, ATS Euromaster operated over 235 tyre and service stations across the country and recently announced plans to scale-up its mobile servicing business. The company plans to open up more than 125 mobile technicians across England, Scotland and Wales in 2025.
ATS Euromaster shared in Janaury that it had hit hard by inflationary pressures as th cost of labour, parts, and materials, making service, maintenance and repair (SMR) jhas skyrockted over the last few years. In Janaury, Mark Holland, operations director at ATS Euromaster, explained: “Across the market fleets are not spending on SMR to the same level. Everyone seems to be tightening their belts with brakes given lower change rates, for example.”