A West Midlands-based vehicle hire company which leased refuse trucks and other heavy vehicles to local authorities and national contracting companies has been placed into administration.
Phoenix Vehicle Hire Limited, of Tipton, entered administration on May 7, with John Kelly and Kirstie Provan, of business rescue and recovery specialists Begbies Traynor, appointed as administrators.
Mr Kelly said: “Following the termination of a number of finance agreements prior to appointment, the company did not have access to a fleet of vehicles to service its customer base. As a consequence, the company entered administration and ceased trading immediately which has resulted in 16 employees being made redundant.
“The administrators novated the fleet support agreements to GMG Asset Management UK Limited, in order to provide continued service and maximise the collection of the company’s book debts.”
Mr Kelly added that the main reasons for the business failure were a loss in turnover earlier in the year and high finance costs.
Interested parties requesting further information should contact Gareth Prince, senior manager at Begbies Traynor, on 0121 200 8150.
Mark is a partner in the Birmingham and Cheltenham offices. He is a Chartered Certified Accountant and also a Licensed Insolvency Practitioner. He joined the company in 2005 and has over 10 years restructuring and insolvency experience. He advises directors and management teams across a wide range of sectors.