Lookers is a long-established car dealership chain in the United Kingdom. The economic downturn associated with COVID-19 lockdown has hit it, but more alarmingly it has also revealed discrepancies in its accounts and potential fraud.
My thesis is that there are too many unknown elements to justify an investment in Lookers at the present time. It may be very cheap by historical standards, but I have a question mark over the firm’s ability to survive as a going concern. Until the fog around the company’s true financial health clears away, it is not investable with