Vehicle rental group goes into administration

Fri, 30 Mar 2018 | ADMINISTRATION

T.O.M Group, a commercial vehicle hire and sales business, has announced it has gone into administration and ceased trading as a result of challenging trading conditions in recent months.

Colin Dempster and Fiona Taylor from the restructuring team at Ernst & Young's have been appointed as joint administrators for the group, which failed in its attempts to restructure its operations in recent months.

The owners of the firm also attempted to market the business for sale, but no suitable parties emerged from the process due to the losses attached to the company and the level of investment required to ensure success in the future.

As a result, the group faced increased pressure from its creditors and the directors were forced to appoint administrators, who will also be responsible for the group's Scottish subsidiary companies T.O.M Vehicle Rental Limited and Caledonian Truck & Van Limited.

In total, 342 jobs will be lost as a result of the administration, with just 86 members of staff retained at the T.O.M Group head office in Airdrie and across its network of depots and dealerships for up to four weeks to assist the joint administrators with the closure of the business.

"The group has incurred operational difficulties and associated liquidity problems in recent years that reflect low utilisation of their rental vehicles, as a result of a competitive market, and changing customer preferences," said Colin Dempster, joint administrator.

He added: "The administrators and fleet funders are contacting customers as a matter of urgency to ensure that the necessary arrangements are in place for them to experience as little disruption to service as possible."


Share this article



Latest Businesses for Sale

Air Conditioning, Heating & Ventilation Contractor
West Midlands, UK

Air conditioning, heating & ventilation contractor offering consultancy, design, sales & installation to commercial, industrial & residential properties. Supplies & installs market leading products to SME’s & blue-chip customers operating in a range...

Asking Price: Offers Invited
Turnover: £1,770,000

Supply & Servicing of Vending Machines & Related Equipment
East Anglia, UK Wide

Supplies, services & maintains a range of vending equipment such as coffee machines, snack vending machines, cold drink machines, water coolers & slush machines. Companies involved in the supply, filling & servicing of food & drink vending machines,...

Asking Price: Offers Invited
Turnover: £800,000

Road Marking Specialist for Builders, SMEs, Schools & Hospitals
North West, UK

Provides thermoplastic markings for roads, car parks & playgrounds, as well as anti-skid paint solutions & road studs. Customers include local authorities, SMEs, hospitals, schools, universities & PLCs within the construction industry. Contracted to...

Asking Price: Offers Invited
Turnover: £640,000


View more businesses for sale

News Search

Latest News

 
22
 
Nov
 

inTec Business Solutions acquires Titan Network Services | BUSINESS SALE

Manchester-based IT services company Titan Network Services ...

 
21
 
Nov
 

Buyer sought as North East contractor enters administration | ADMINISTRATION

A buyer is being sought for Pro-Fix Installations after the ...

 
20
 
Nov
 

Swindon waste-to-gas plant construction to resume after administration | ADMINISTRATION

An unfinished waste-to-gas facility in Swindon has secured &...

Free guide: 10 Biggest Buyer Mistakes

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

Email


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