EY has also been appointed administrators of its Scottish subsidiary companies T.O.M. Vehicle Rental Ltd and Caledonian Truck & Van Ltd.

The administrators are confident that they will successfully sell the business and assets of a third subsidiary, Alistair Fleming Ltd based in Kilmarnock. The sale will see all 21 employees transferred to the new business.

The group had faced challenging trading conditions in recent months. Considerable efforts had been made to restructure its operations and, when that proved too difficult, the owners marketed it for sale. No suitable interested parties emerged from the sale process, due to the scale of the losses and the investment required to turn the business around. EY said the group’s lack of liquidity and increasing pressure from creditors meant the directors had no option but to seek the appointment of administrators.

On their appointment, the group ceased trading and 342 employees have been made redundant across eleven locations in Scotland and England. 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.

Colin Dempster, EY partner and joint administrator, said: ‘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.’

Dempster said 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.

Report by Pat Sweet