A leading commercial van rental firm based in Glasgow has fallen into administration.
Following a downturn in trading and financial difficulties, PwC has been appointed as administrators to Leaseway Vehicle Rental, which opened its first depot in the Scottish city in 2003.
Head of business recovery services at PwC in Scotland, Bruce Cartwright, who is also acting as joint administrator, said, “The company’s directors have considered various options to deliver a restructuring solution that would provide a long-term viable business. Unfortunately, the directors have concluded that this will not be feasible and taken steps to place the company in administration
“Leaseway has attracted a large number of high-quality customers that we believe may be attractive to potential purchasers,” he added.
The company could be a sensible purchase following suggestions that demand for rental vehicles will rise due to spending cuts implemented by private-sector operators.
Leaseway Vehicle Rental's latest accounts revealed that its fleet of vehicles were valued at £155 million in March of last year. At that point, the firm had debts of £158 million to creditors including HBOS.
All 176 staff across the Glasgow head office and five depots located south of the border, could face losing their jobs, although nobody has been made redundant as yet.