A CAR dealership in Orford has closed after its parent company went into recievership.

Caledonia Direct in Orford Lane is one of four showrooms owned by Calendonia Motor Holdings that is reportedly being sold to clear large debts.

Five others will remain open, including one in Winwick Road, formerly known as Caledonia Motor Group but now trading under the name Warrington Motors'.

On Wednesday, an employee there confirmed Caledonia Direct's fate and said its own showroom had been bought by Bolton-based firm Cambria Motors.

"Four have closed down in the group but we are still open but trading under a new name," the employee said.

"Everyone is still in a job but things here are a bit hectic as we only started up again on Monday, although we never actually closed."

Around half of Caledonia Motor Holdings' 200-strong workforce is understood to have been made redundant within the company, which sells new and second-hand Fiat, Citroen and Alfa Romeo cars.

But since joint administrative receivers Dermot Power and Matt Durnham of Manchester accountancy firm BDO Stoy Hayward were appointed on January 14, 115 jobs have been saved by the sale of Winwick Road, where between 30 and 40 people are employed, and three others in the north west also to Cambria.

Mr Power described Cambria as a leading player in the automotive market' and said he believed the Winwick Road showroom had strong potential'.

It is believed that increased competition in the car retail sector had squeezed profits for firms like Caledonia and the credit crunch had made consumers more reluctant to take out loans to buy a new car.

The other Caledonia sites being closed are in Blackburn, Newport, Manchester and Chester.