PwC continues trading the
commercial vehicle fleet hire business, while seeking a
buyer.
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Leaseway Vehicle Rental, one of the
UK’s largest privately owned light commercial vehicle fleet hire
businesses, went into administration on 1 December, prompting a
flurry of buying interest from other industry players.
The company, which operates from
Glasgow, Newcastle, Leeds, Manchester, Birmingham and London, was
set up in 2003 and currently runs a fleet of around 13,000
vehicles, with 255 employees and a wide spectrum of customers, from
sole traders to large corporates.
Bruce Cartwright, Laurie Manson and
Ian Green of PwC have been appointed as joint administrators of the
company.
Cartwright, also PwC’s head of
business recovery in Scotland, said: “During the last 12 months,
Leaseway has encountered trading difficulties that has made it
difficult for the company to service its existing financial
obligations.
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By GlobalData“The company’s directors have
considered various options to deliver a restructuring solution that
would provide a long-term viable business. Unfortunately, the
directors have concluded that this will not be feasible and they
have taken steps to place the company in administration to protect
the business and assets.”
He said PwC would continue trading
the business, ensuring it continued to meet contract commitments,
and that his team would work closely with existing management and
employees as well as suppliers and customers “to try and ensure
that we achieve a positive solution”.
“We are also seeking a buyer for
some or all parts of the business – and from the release of the
announcement, we have seen an unusual and surprisingly high level
of interest from the trade. Of course, at this stage, we can’t be
sure whether potential purchasers are interested in buying
particular depots, or the whole business, or particular contracts
and the fleets that go with them.
“We will shortly sign up
confidentiality agreements with the interested parties, so we can
provide them with more information about the business. And then, at
the appropriate time, we’ll ask for indicative offers. We hope to
identify interests that will protect as much of Leaseway’s business
and employment as we can.”
Parties interested in acquiring the business are encouraged to
talk to its administrators.
