By Matthew Legg Business editor

Last updated 10:33, Sunday, 28 September 2008

Carlisle's Motor World store will not close, despite a nationwide cull of the company’s stores which has seen 300 jobs lost.

Credit crunch: Motor World in Carlisle will not be one of the 95 branches to close

The car parts retailer was ordered to shut 95 of its 237 branches after it was placed into administration on Thursday.

A deal was then struck to sell its remaining 142 units, saving 500 jobs including those at its Carlisle shop, on Old Raffles Parade, Wigton Road.

A member of staff there said yesterday that workers had not yet been told whether their jobs were safe.

Accountants BDO Stoy Hayward were called as administrators after Motor World became the latest victim of the downturn on the High Street.

They confirmed the Carlisle store would not be closing.

A number of Motor World’s branches were trading at a loss because of the collapse in consumer spending sparked by the credit crunch, the fall in house prices and the woes in the world economy.

The company was told to shut down almost a third of its branches, throwing 300 people out of work.

The rest were sold to Pacific Retail Ltd, a company funded by existing investors in the business, Bailey Capital Limited.

Martin Waite, of Bailey Capital said: “We remain acutely aware that difficult trading conditions will continue, but remain hopeful that we can move the business forward following the restructuring that has taken place and the consequent strengthening of the management team.”

Motor World is one of the UK’s largest independent car parts retailers and also sells bicycles and other leisure products.

Graham Newton, of BDO Stoy Hayward, said: “Despite a strong trading name and presence on the High Street, Motor World has been a direct casualty of the current retail difficulties and the continuing squeeze on available credit.”