Last updated at 08:44, Tuesday, 26 February 2013

Stobart Group, the logistics giant founded in Cumbria, has sold its Stobart Vehicle Services subsidiary to Paragon Automotive.

The division was part of the Autologic car transportation business, bought by Stobart last year for £12.6 million.

It will now trade as Paragon Vehicle Services offering after-sales services such as new car preparation and customisation and the running of port operations.

As part of the deal, Paragon takes on the former Autologic sites in Corby, Portbury and Doncaster, five manufacturer locations and 500 staff.

Law firm Howes Percival acted for Paragon.

The sale comes hot on the heels of a boardroom shake-up at Stobart Group and a recent profits warning.

Rodney Baker-Bates was replaced as chairman last month by Avril Palmer-Baunack, previously chief executive of Autologic and latterly deputy chief executive at Stobart Group. Another non-executive director, David Beever, also departed.

The Financial Times reported that the changes were at the behest of the fund-management group Invesco, which owns more than a third of Stobart’s shares.

Stobart’s share price has fallen by a third from a peak of 140p last March.

First published at 08:38, Tuesday, 26 February 2013
Published by http://www.cumberlandnews.co.uk