A TYRE shop in Basingstoke has suddenly closed its doors due to 'increasing costs' and 'sluggish activity'.

ATS Euromaster has closed 86 stores across the country, including the Basingstoke branch in Winchester Road, as part of restructuring plans.

The Michelin-owned company said that it has put proposals in place to 'close some non-profitable service centres', including three in Hampshire, due to a rise in costs. 

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The town's branch has disappeared from the 'find a centre' section on the ATS Euromaster website, with the closest locations listed as Aldershot, Andover, Eastleigh, Fareham, Portsmouth and Winchester.

A spokesperson for the company confirmed that it had closed, adding that all impacted employees are 'under consultation'.

The spokesperson continued: "In a UK automotive aftermarket context of overcapacity, increasing costs and sluggish activity and growth ATS Euromaster intends to review its current operating model and has put in place a proposal to close some non-profitable service centres.

"Employees impacted by this proposal are under consultation. 

"In the meantime, our priority is to provide them with the best levels of support as possible. This decision will not impact the high quality of services that we offer to our customers.

"We intend that it enables us to concentrate our efforts on strategic levels for sustainable development, including services around ATS mobile capabilities and the shaping of a franchise model already successfully developed in several countries."