Fri, 14 Jul 2023 | ADMINISTRATION
Non-profit bike and care hire firm Co Cars Ltd has fallen into administration and ceased operation, with a buyer to be sought for all or parts of the business. The company’s managing director Nic Eversett said that the firm has suffered a turbulent couple of years, with services suspended during the pandemic and a broad shift in travel habits.
More recently, the company had been hit by increased costs and falling demand, with efforts to secure additional funding proving to be unsuccessful. The company has also seen significant damage to its fleet of bikes and bike stations from vandalism, as well as suffering from supply chain issues.
In a statement, Nic Eversett said: "During the last few months, the Board and management team have focussed on seeking additional funding to allow us to make the necessary changes to our business model to safeguard its viability. Unfortunately, we have been unable to attract the level of funding needed. Sadly, this means Co Cars and Co Bikes will cease to operate car and bike services by the 14th of July 2023.”
Eversett added that the company’s struggles had led it to appoint insolvency practitioners Milsted Langdon LLP as administrators, who will assist the board in seeking a buyer for all or part of the business.
The company, which was founded with just one car in 2005, was reported to recently have a fleet of low-emission cars and more than 200 electric bikes. It was popular in Exeter and parts of East Devon, with a combined membership of more than 10,000 people and was reported to be heavily used by gig economy workers and delivery drivers.
The collapse of Co Cars comes months after the collapse of Ride-On Scotland, an e-bike hire firm that operated in Dundee and Leicester, which fell into administration earlier this year as a result of a shortfall in investment.
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