It is thought that the highest ranking employees affected will be divisional directors.

Finance director David Forsyth said in a letter to members of the schemes: "Pendragon … has proposed to cease future accrual of defined salary benefits in your salary pension scheme. The company has entered into a period of consultation with affected members which is expected to last 60 days."

Pendragon said in an announcement attached to the letter: "In the light of rapidly changing economic factors and increasing life expectancy the company is concerned about maintaining and potentially increasing its exposure to uncertain and volatile costs under the schemes [that] could seriously damage the company's ongoing business."

The company has offered members a new stakeholder pension. Employees will pay contributions of 3pc into the new fund, which will be matched by Pendragon. Members of the affected funds will be able to receive up to 25pc of their accumulated fund.

By filing for a CVA, the pension scheme can be handed over to the state-backed Pension Protection Fund.

In return, Pittards will pay the PPF an upfront sum of £1.6m, a further £2m-£3m over the next five years and give it an 18pc equity stake in the company. 

Pittards, which also announced plans to close down its Leeds tannery with the loss of 230 jobs alongside a £10.4m full-year loss yesterday, said shedding its pension problems "will enable the company to move forward".