Thu, 29 May 2014 | ADMINISTRATION
Titpon-based Phoenix Vehicle Hire Limited has entered administration following a loss in turnover earlier in the year.
The West Midlands company leased refuse trucks and other heavy vehicles to both local authorities and national contracting companies across the UK. It entered administration earlier this month with business being ceased and the entire workforce being made redundant shortly after, Credit Man reported yesterday (28 May).
John Kelly and Kirstie Provan of the business rescue and recovery specialists Begbies Traynor have been appointed as joint administrators. In a statement it was revealed that the financial problems occurred after Phoenix Vehicle Hire experienced a loss in turnover earlier in the year and therefore struggled with the high finance costs of running the business.
The result of this was that the company lost several contracts it had with suppliers, meaning it was no longer able to provide fleet vehicles to its customer base.
Mr Kelly explained: “Following the termination of a number of finance agreements prior to appointment, the company did not have access to a fleet of vehicles to service its customer base. As a consequence, the company entered administration and ceased trading immediately, which has resulted in 16 employees being made redundant.
“The administrators novated the fleet support agreements to GMG Asset Management UK Limited, in order to provide continued service and maximise the collection of the company’s book debts.”
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