The Caledonia Motor Group has gone into receivership, with estimated debts of 20 million.
The Warrington-based group runs 11 sites in the north-west of England, selling Alfa Romeos, Citroens and Fiats.
Four sites have already been closed, while the rest remain open as the receivers assess their viability.
Dermot Power, spokesman for receivers BDO Stoy Hayward, said: 'We are in discussions with the car manufacturers and interested parties to work towards a rescue plan to secure the future of these dealerships.'
The rights of car buyers from these dealerships with manufacturers' warranties will be unaffected.