Fri, 30 Mar 2018 | ADMINISTRATION
T.O.M Group, a commercial vehicle hire and sales business, has announced it has gone into administration and ceased trading as a result of challenging trading conditions in recent months.
Colin Dempster and Fiona Taylor from the restructuring team at Ernst & Young's have been appointed as joint administrators for the group, which failed in its attempts to restructure its operations in recent months.
The owners of the firm also attempted to market the business for sale, but no suitable parties emerged from the process due to the losses attached to the company and the level of investment required to ensure success in the future.
As a result, the group faced increased pressure from its creditors and the directors were forced to appoint administrators, who will also be responsible for the group's Scottish subsidiary companies T.O.M Vehicle Rental Limited and Caledonian Truck & Van Limited.
In total, 342 jobs will be lost as a result of the administration, with just 86 members of staff retained at the T.O.M Group head office in Airdrie and across its network of depots and dealerships for up to four weeks to assist the joint administrators with the closure of the business.
"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," said Colin Dempster, joint administrator.
He added: "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."
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