TOM Group – parent company of TOM Vehicle Rental and Caledonian Truck & Van - has gone into administration following challenging trading conditions.
The commercial vehicle hire, sales and services business, employed 428 people and operated a fleet of more than 16,000 commercial vehicles, including vans, trucks, trailers and cars from 15 depots nationwide.
Eighty-six members of staff will continue to work at the group’s head office in Airdrie and across the depot and dealership network for up to four weeks to assist the administrators with an orderly wind down of the business and respond to any customer queries.
EY (Ernst & Young) has been appointed as administrator and is confident it will be able to sell the business and assets of third subsidiary Alistair Fleming Ltd. The sale will see all 21 employees transferred to the new business.
Colin Dempster, joint administrator, said: “The group has incurred operational difficulties and associated liquidity problems in recent years that reflect low utilisation of their rental vehicle, as a result of a competitive market and changing customer preferences.
“Despite the best efforts to save the group, it could not continue to operate as a going concern and administrators were appointed.
“It is with regret that 342 people have been made redundant.
“Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”
EY said considerable efforts had been made to restructure the group’s operations and, when that proved too difficult, the owners marketed it for sale.
Unfortunately, no suitable interested parties emerged from the sale process due to the scale of the losses and the investment required to turn the business around.
Due to the group’s lack of liquidity and increasing pressure from creditors, the directors had no option but to seek the appointment of administrators.
Dempster 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.”
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Sir Chips - 29/03/2018 16:51
You would have thought after 1car1 and Leaseway that lessons would have been learnt.
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Petrol Paul - 29/03/2018 18:11
A great shame to hear of job losses in our industry. The timing (although never ideal) just before the Easter means these poor people will not have the relaxing break most of us will. My thoughts are with you and if some consolation other parts of the fleet sector are doing better and I am sure you will be presented with other opportunities both in and out of our sector. Fleet will have given you a customer centric approach which is valued everywhere.
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