UK car hire firm goes into administration - Car Rental News
UK car hire firm goes into administration
Car Rental News - 19/03/2009
More than 800 employees at a top car and van rental company are at risk of losing their jobs.
Two hundred of the staff, including those based at the Leeds headquarters of 1Car1, have been made redundant already, according to the administrators, PricewaterhouseCoopers.
The rental car company has a workforce of 800 employees at its 87 sites located in England, Scotland and Wales. Of the total, 108 have worked at the Leeds head office.
Steve Ellis, the joint administrator from PricewaterhouseCoopers, said: "It has sadly become reliant on levels of funding which are unsustainable in the current credit climate."
The administrators are hoping to find a buyer for the rental business and the 15,000 vehicles in its fleet. It is expected that operations will wind down during the next five week.
Ellis added: "1car1 has grown very rapidly over the last five years but since the onset of the downturn the company has experienced a tightening of its available credit. This has meant that the replenishment of the vehicle fleet has been difficult to fulfil.”
He went on to say: "Clearly it is disappointing to have to make a big number of redundancies. My team and I will be doing all we can to help these employees at this difficult time."