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."
Experience in working with all makes of cars and light commercial vehicles. Established for over 50 years. The Company has been established for over 50 years, operating a well-run, cash-generative, fully equipped body shop. In recent years, there has...
FREEHOLD
Extremely well-presented MOT and car repair business located in Winsford, Cheshire. The business was established over 50 years ago and our client has been trading for 30 years. During this time the seller has built up an excellent reputation, generat...
FREEHOLD
Covers a wide area including Greater Manchester, Liverpool & Leeds. Established blue chip Client base. Key sectors covered. Education, health care, commercial property & local authority. Staff are trained to the British standard Tag Abseil Supervisor...
FREEHOLD
|
20
|
|
Sep
|
Thomas Cook seeking 'last-ditch' fire sale | BUSINESS SALE
Thomas Cook Group is reportedly trying to piece together a l...
|
19
|
|
Sep
|
Smith & Williamson and Tilney to merge | MERGER
After revealing in August this year that talks were in place...
|
18
|
|
Sep
|
Infrastructure investment manager takes stake in LJLA | BUSINESS SALE
Infrastructure investment management group, Ancala Partners,...
Sign up to receive our acquisition alert emails to get your FREE guide
|
23
|
|
Apr
|
The Hut Group buys Christophe Robin haircare brand | BUSINESS SALE
British e-commerce firm The Hut Group (THG) has acquired Fre...
|
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...
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources