Commercial vehicle hire firm Tom Group and its Scottish subsidiary companies TOM Vehicle Rental and Caledonian Truck & Van has gone into administration with the loss of 342 jobs.
The firm had faced challenging trading conditions in recent months and called in the administrators after attempts to restructure the operations and subsequently sell off the business had failed.
Colin Dempster and Fiona Taylor of Ernst & Young’s restructuring team have been appointed joint administrators of the group.
Dempster commented: “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.”
A total of 86 members of staff will be retained 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.
Dempster continued: “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.”
The administrators added that they were confident that they will successfully sell the business and assets of a third subsidiary, Alistair Fleming Limited based in Kilmarnock. The sale will see all 21 employees transferred to the new business.
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