Administrators have been appointed at accident management company Drive Assist after they experienced considerable working capital management problems and subsequent cash flow difficulties.
Alastair Beveridge, Ryan Grant and Simon Wilson, partners at Zolfo Cooper, were appointed joint administrators over Drive Assist (UK), Millennium Motor Group and Sol Car Rentals.
The companies employ a total of 640 staff.
Beveridge said: “Unfortunately, in recent months the companies have experienced the loss of a major customer which has resulted in increasing cash flow pressures, and administration was the only option available.
“Regrettably, 259 employees have been made redundant with immediate effect. We will be working alongside all stakeholders to determine the most appropriate next steps for the benefit of all creditors.”
Headquartered in Tamworth, Staffordshire and with a further 14 locations across the UK, the companies’ main activity is the short-term leasing of replacement motor vehicles on a credit hire basis to individuals following non-fault road traffic accidents.
Other business activities include the retail sale of ex-fleet vehicles at Nottingham AutoPark, part of the Millennium Motor Group division.