More than 400 jobs to go as Airdrie vehicle rental firm enters administration

More than 400 workers are to lose their jobs after an Airdrie-based vehicle hire firm went into administration.

TOM Vehicle Rental bosses have called in administrators after they were unable to overcome "operational difficulties".

It's understood 342 employees are being made redundant across eleven locations in Scotland and England.

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

On appointment of the Joint Administrators 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, Joint Administrator, commented: “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.

“Despite the best efforts to save the Group, it could not continue to operate as a going concern and Administrators were appointed. It is with regret that 342 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”

Employees that are ultimately affected by redundancy will be offered appropriate advice and support in making claims for redundancy and notice pay to the redundancy payments scheme.

Colin continued: “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."