Fleet News

Rental firm calls in the administrators

Rental company Leaseway Vehicle Rental has called in the administrators a week after Fleet News reported it was considering closing two of its sites.

The company operates one of the UK’s largest privately owned short-term van rental businesses from a network of sites across the country.

Established in 2003, the company has now runs a fleet of about 13,000 vehicles, employs 255 people, and has a range of customers from large corporate to sole traders.

Bruce Cartwright, joint administrator and 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.

“Our immediate priority is to continue trading the business, ensuring that 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.

“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.”

Leaseway locations are Glasgow , Newcastle, Leeds, Manchester, Birmingham and London.

Leaseway is the second firm to announce it is closing after last weeks news that TLS is to close. To read the full story on TLS, click here.

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