Family-run car dealership Caffyns has been forced to close two of its showrooms following the collapse of MG Rover Group last month.

The Eastbourne-based company said it had been unable to find new franchises for its branches in Seaford, East Sussex and Ramsgate, Kent.

In a statement, Caffyns said the small number of staff at Seaford and Ramsgate would be relocated to other positions within the group where possible.

The group's seven other dealerships which sold MG Rover had been saved and would continue to offer after-sales service, the group said.

The large showroom in Preston Road, Brighton, has already been converted to Vauxhall, while the dealerships in Eastbourne and Worthing are also in the process of being re-franchised.

Caffyn's former MG Rover dealership in Tunbridge Wells will now concentrate solely on its Vauxhall franchise and will also be adding Chevrolet to its line-up.

The group's smaller branches in Uckfield and Lewes would operate as specialist used-car and after-sales service operations.

Meanwhile, Caffyns said it was issuing free replacement warranties to customers who bought an MG Rover vehicle from one of its showrooms before April 9, 2005.

The decision was taken after MG Rover's administrators, PricewaterhouseCooper, said it no longer had sufficient funds to reimburse dealers for repair costs.

Tuesday May 10 2005