Administrators appointed for vehicle hire firm

Tue, 10 Apr 2018 | ADMINISTRATION

Ernst & Young (EY) has officially been appointed administrator for TOM Vehicle Rental after the Scottish firm was forced into liquidation.

Hundreds of workers have lost their jobs after the debt-plagued firm, which provided long-tern vehicle rental services, failed to find a viable buyer during a drawn out sales process.

However, the administrators have stated they are confident they will succeed in finding a buyer and selling the business and the assets of Alistair Fleming, a third subsidiary.

In total, 342 employees have been made redundant across the firms 11 sites in England and Scotland since it ceased trading. However, EY has confirmed that 86 staff members will continue to work at the company's head office to assist with the wind down of the business.

According to Colin Dempster, joint administrator from EY, the group has faced a number of difficulties related to both operations and liquidity in the last few years due to changes in their customers' preferences and an increase in competition in the long-term vehicle rental market.

In fact, the firm's owners Equistone have revealed that they were required to provide additional funding for the business throughout the duration of its ownership as a result of cash-flow issues. However, an Equistone spokesperson asserted that Tom's financial position still failed to sufficiently improve, even with this added financial support.

"Despite the best efforts to save the Group, it could not continue to operate as a going concern and Administrators were appointed," Mr Dempster said. "Our specialist team will work with [employees] affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office."


Share this article



Latest Businesses for Sale

Luxury Kennels & Cattery
Yorkshire and the Humber, UK

Luxury kennels and cattery with professional grooming parlour (licensed for 142 dogs and 26 cats) in Peterborough for Sale. An opportunity to acquire this luxury kennels and cattery with stunning spacious four bedroom detached residence which must be...

Asking Price: £1,500,000
Turnover: £522,542

LEASEHOLD


Haulage Business
South Wales, Wales, UK

The business has been established for a number of years and has been owned and operated by the founder since that date. Offers invited.

Asking Price: £850,000
Turnover: £2,595,443

FREEHOLD


Air Treatment Company
Northern Ireland, UK

Established in the late 1970s, this business is now one of the leading air treatment companies in Ireland. The business is highly accredited and provides a diverse range of products. Offers invited.

Asking Price: £425,000
Turnover: £1,500,000

LEASEHOLD



View more businesses for sale

News Search

Latest News

 
22
 
Mar
 

Scunthorpe nightclub up for sale | BUSINESS SALE

A former nightclub based in Scunthorpe has been put up for s...

 
21
 
Mar
 

Kent Logistics provider completes a successful acquisition | BUSINESS SALE

A Kent-based personalised logistics provider, backed by Livi...

 
20
 
Mar
 

Warrington construction company enters administration | ADMINISTRATION

A prominent construction business headquartered in Orford Gr...

Free guide: 10 Biggest Buyer Mistakes

Sign up to receive our acquisition alert emails to get your FREE guide

Email


Related News

 
08
 
Mar
 

Fashion retailer LK Bennett enters administration | ADMINISTRATION

Premium fashion brand LK Bennett has fallen into administrat...

 
13
 
Dec
 

Harvard Technology Limited enters administration | ADMINISTRATION

A lighting company based in Normanton has been forced to eng...

 
04
 
Sep
 

E-commerce company acquires beauty product manufacturer | BUSINESS SALE

In a deal valued at roughly £60 million, online retail...

Want access to the latest businesses for sale?

Business Sale Report is your complete solution to finding great acquisition opportunities.

Join today to receive:

  • Comprehensive range of businesses for sale
  • Make direct contact with business sellers or their intermediaries
  • Access to all UK administrations, liquidations and winding-up petitions
  • Daily email alerts for the latest businesses for sale & distressed notifications
  • Business Sale Report publication posted to you every month
  • Advertise your acquisition requirements on our "business wanted" section

All this and much more, including the latest M&A news and exclusive resources