Virgin Cars closed its doors to business just before Christmas. When it was set up in May 2000, Branson said: “It is our intention to become the biggest car dealer in Britain.”
It did not quite work out like that. Originally an internet-only dealer, Virgin Cars struggled to compete against big motor retail groups. So in 2003 it decided that it needed to be in bricks and mortar as well. It opened a dealership in Salford, Manchester, and teamed up with industry veteran Derek Cook, founder of the DC Cook dealer group.
Branson originally sold a majority stake in Virgin Cars to Cook, but later bought back a controlling interest.
A note on the Virgin Cars website this weekend said it had stopped taking orders for new cars on December 22. It said it would continue to provide existing customers with after-sales service, and directed inquiries to DC Cook.
A Virgin spokesman confirmed this weekend that the company had been sold to Cook, and that the Virgin brand would be withdrawn. Derek Cook was killed in a car crash in France last year, and his role at Virgin Cars was taken by Paula, his eldest daughter.
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Car retailing joins a list of businesses that have not quite prospered under the Branson touch.
Virgin Cola has all but disappeared from public view, while Virgin Vie, Virgin Clothes and Virgin Vodka have all proved disappointing.
On Friday Branson helped cement a deal that is expected to see NTL buy Virgin Mobile, the mobile-phone company. Branson, who owns 72% of Virgin Mobile, has agreed to accept 360p a share from NTL. He will use about £10m of his proceeds from the deal to pay an extra sum to minority shareholders, who had held out for 372p a share.