Up to 60 jobs will be lost with the breakup of a prominent car dealership.

Dutton Forshaw in Bircholt Road, Maidstone. is shutting its loss-making Skoda, Chevrolet and parts operations, which will cease trading at the end of October.

The Citroen franchise is being sold to another operator and will move to a new site in Maidstone.

However, the profitable Mercedes-Benz/Smart operation is being retained and redeveloped at Bircholt Road, along with a bodyshop operation.

The closures follow a national review by Lookers plc, one of the UK’s largest motor retailers, which bought Dutton Forshaw and its 31 outlets, including Maidstone, in a £60 million deal last October.

It is understood from a source close to the company that around 60 jobs will be affected by the closures. Staff were told about the shock decision on Friday.

Lookers said they would be consulted about “alternative employment opportunities” within the group or offered assistance in finding new jobs elsewhere.

Lookers claimed Dutton-Forshaw’s multi-site operation was on an ageing site which needed substantial redevelopment.

The company said it would be writing to customers about vehicle servicing and other arrangements.

In a statement, it said: “It is with sincere regret that the company is taking actions to close elements of the Maidstone business. However, the actions taken will secure ongoing employment for all staff within the Mercedes, Smart and bodyshop businesses, offering state of the art facilities to our customers.

“At the same time, Lookers will work closely with affected staff to protect as many ongoing jobs as possible.”

In its half-year statement, issued last month, Lookers spoke about challenging trading conditions across the UK. Recent surveys have shown a slump in the sales of both new and used cars.

Lookers said: “Whilst the market saw new car registrations fall by 1.6 per cent in the first six months of the year, some of the franchises we represent have significantly under-performed this national average for the period.”

However, Lookers posted a £1 billion turnover in the six months to June 30, up on the same period a year ago, and reported a “solid performance” against this tougher trading environment.