Van hire business goes into administration

A COMMERCIAL vehicle hire business with bases in Birmingham, Leeds and Manchester has gone into administration threatening the jobs of more than 250 people.

Bruce Cartwright, Laurie Manson and Ian Green of PwC have been appointed as joint administrators of Leaseway Vehicle Rental Ltd with immediate effect.

The company operates one of the UK’s largest privately owned light commercial vehicle (LCV) fleet hire business from a network of sites across the country.  

Established in 2003, the company has steadily grown and currently runs a fleet of around 13,000 vehicles,  employs  255 people, and has a wide spectrum of customers from large corporate to sole traders.

Although based in Glasgow, it has a number of bases in England. In addition to those in the West Midlands, North West and Yorkshire, it has outlets in London and Newcastle.

Mr Cartwright, who is also head of business recovery services at PwC 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.

“In response, 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 taken steps to place the company in administration to protect the business and assets.”

He said the immediate priority was to see the business continue to trade and ensure commitments to contracted customers are met.

“Throughout this period, we will work closely with the existing management team, employees across all sites, suppliers and customers to try and ensure that we achieve a positive solution,” he added.  

“We will also explore the opportunity to seek a buyer for some or all parts of the business. Leaseway has attracted a large number of high quality customers that we believe may be attractive to potential purchasers.  We would encourage any parties interested in acquiring this business to get in touch with us.”