Alexander Kinninmonth and David Green of RSM Tenon, Southampton, have been appointed joint liquidators of Bickerley Garage and Star Cars (Dorset), two connected companies.

Bickerley Garage, founded in 2004, traded from premises in Kings Arm Lane, Ringwood, as a garage and MOT testing station. The company employed six members of staff who were made redundant when the garage ceased to trade on December 13, 2011.

Star Cars (Dorset), founded in 2002, traded from the same premises as a used car dealership specialising in selling low cost used cars to the general public. The company also ceased to trade in December.

Richard Forward, director of Bickerley Garage and Star Cars (Dorset), attributed both companies' financial difficulties to the current economic climate which has resulted in reduced turnover and therefore significant losses. The companies were unable to meet their ongoing financial commitments and had no alternative but to cease to trade.

Alexander Kinninmonth, joint liquidator, said: “The downturn in the economy has led to reduced consumer confidence and spending. The direct impact of a reduction in demand has been a squeeze on cashflow and thus the inability of the companies to meet creditors as and when they fell due. There was an increase in the insolvency figures for this sector in the South East over the last year, and I suspect we will see this knock-on effect in many other sectors during the course of 2012.”