A Stafford car dealership hit by the credit crunch is being sold, leaving the future of about 40 staff unclear.

And an electrical store in Stafford town centre has closed after falling victim to the economic downturn. Stafford Volkswagen, Common Road, is in the process of being bought by new owners.

Rees Caddick Garages Ltd, which runs the Stafford Volkswagen and sister Lakeside Volkswagen business in Stoke-on-Trent, where about 30 work, is talking to Clare James Automotive Ltd, of Warrington, on sale of the business. No price details have been revealed.

Existing staff will transfer to the new owner under current terms and conditions, but Clare James will review operations at both sites. Letters told staff the reason for selling is the economic downturn’s impact on the business. Ian Rutter, Clare James Automotive managing director, would only say today that negotiations were taking place.

Stafford Volkswagen brand manager Shaun Burke was not available for comment today and was said to be at a meeting at group HQ in Stoke.

Meanwhile the former Wardstaff Electrics on Bridge Street has shut after more than 30 years.

Wardstaff, which ran a maintenance service for household appliances, had a major refurbishment last year after new owners Dave O’Brien and Andy Watts bought it off founder Roger Longstaff.

Relaunching the shop in June, they promised to build on its reputation but create a more modern setting for the business. It became part of Watts Ltd electrical and plumbing services.

However, the shop has closed and been virtually cleared of all stock. A notice says Watts (Stafford) Ltd has ceased trading due to insolvency and the shop and service side are no longer operating.

* Last week more than 30 jobs at the former Mike Thompson Peugeot dealership, Newport Road, were saved as the business, in administration, was bought by Staffordshire motor group Randles