Today is a sad day for the UK rental market, with news just landing that the TOM Vehicle Rental Group has collapsed and has gone into administration. Resulting in the loss of 350 jobs, employees are being let go from various departments and bases across the country.
It has now been announced that EY accountancy firm has been appointed to manage the transition, naming Colin Dempster and Fiona Taylor as joint administrators.
Having bought, sold and acquired many businesses during the last decade, this administration will include the group’s Scottish subsidiary businesses; TOM Vehicle Rental Limited and Caledonian Truck & Van Limited.
Having acquired Transflex Vehicle Rental last summer, the business specialises in light commercial rentals; existing as the third largest UK business of its kind with regards to assets. However, the business has experienced a rocky few years, seeing a huge dip in rental activity. Whilst trying to diversify, TOM has failed to outshine the competition.
In an official statement the administrators said the following:
“The group had faced challenging trading conditions in recent months. Considerable efforts had been made to restructure its 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.
Administrators also placed ‘operational issues’ as part of the brand’s inability to bounce back.
“Despite the best efforts to save the group, it could not continue to operate as a going concern and administrators were appointed.
“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” they continued.
For the next four weeks, 86 of the remaining staff members will support the administrative process, helping to wind down the business once and for all.
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