Following the announcement that it is exiting the motor trade the group, which is part of North Eastern Co-op, is locked in negotiations either to sell the business as a whole or to sell clusters of dealerships.
“There has been a lot of interest in our dealerships across the UK and we are at an advanced stage of negotiation,” said Steve Warren, Priory Motor Group secretary.
“We are looking at all options,” Warren said but added: “There has been more interest in selling parts of the business and this is the more likely option.”
Warren declined to name the dealer groups involved in negotiations or the amount Priory was expecting to raise from the sale but claimed it would be a “significant sum”.
Priory's outlets are located in five clusters within the north east, Nottinghamshire, Cheshire, Cambridgeshire and the south east, which between them sell over 14,000 cars a year and employ 800 people.
The group operates 13 franchises across 11 sites, owns four bodyshops and had a turnover of £226m last year, placing it 35th in the Motor Trader Top 200.
Warren said that Priory could be in a position to make an announcement on some of its businesses within the next month.
“It's an acquisitive market at present and there is a lot of consolidation going on so it's an ideal time to sell. Now is the right time to exit the industry,” Warren said.
Reg Vardy has been linked with the purchase of Priory's North Eastern portfolio but declined to comment on the rumours.
Sunwin Motors, another Co-op owned business, announced expansion plans earlier this year and could be interested in the Midlands businesses — an area it has said it is keen to expand into.