Bu Val ceased trading?

[Xenophon PCDGS]

This company based on Smithy Bridge Road in Littleborough runs services in the Rochdale area and also school service routes. It is undestood that they were suffering from fuel overhead costs. It is reported that they have ceased trading last weekend, after a good number of years as an operator.

Has anyone any further news to report.

 

[vectra33]

This company based on Smithy Bridge Road in Littleborough runs services in the Rochdale area and also school service routes. It is undestood that they were suffering from fuel overhead costs. It is reported that they have ceased trading last weekend, after a good number of years as an operator.

Has anyone any further news to report.

TFGM are organising replacement operators for the tendered routes from tomorrow.(weds)

A merseyside independent in st Helens also gave up on tendered routes today(unconnected with bu-val)

dave

 

[Xenophon PCDGS]

That is good news, as some parts of the north of Rochdale would be not well served, until replacements are in place.


Tuesday, 25th May 2011...POST UPDATE
I can now report that a full list of all replacements can be found on the TfGM website main title page, as there has been a special BU VAL QUICK LINK added to that site.

 

[northernrail]

i used to live around the corner from there depot so kow the area well, ill try to get back down there next week and see whats left.

 

[Xenophon PCDGS]

TfGM very quickly found replacements for the school bus routes that Bu Val were running.

 

[vectra33]

for anyone who is interested the fleet of Bu Val are being auctioned off on line by the receivers.

This is a link to the live on line auction.


http://www.bidspotter.co.uk/forms/TimedAuctionList.php?eventid=662

 

[martinsh]

for anyone who is interested the fleet of Bu Val are being auctioned off on line by the receivers.

This is a link to the live on line auction.


http://www.bidspotter.co.uk/forms/TimedAuctionList.php?eventid=662

Interesting. Some of the prices look quite reasonable at the moment (anyone fancy a 6 year old Dart for £2000 ?) but I imagine they will rise significantly before the end.

That wasn't their whole fleet, as they had at least one Dennis Trident. Guess that might have been on lease though ?

 

[Xenophon PCDGS]

Considering it was only 23rd May 2011, when I opened this thread, I am surprised just how quickly matters have progressed to the stage when the Receivers are already making preparation for the sale of the buses that were not on lease to Bu Val.

 

[WatcherZero]

Must have been evident immediatley it was not viable as a going concern.

 

[Xenophon PCDGS]

Must have been evident immediatley it was not viable as a going concern.

Agreed, but that was not the point that I was making. Everyone knew of the problems affecting the company. It was just the speed of the Receivers that was surprising.

 

[WatcherZero]

Thats what I meant, normally the Recievers would assess whether it could be restarted with a fresh capital injection, sold on as a going concern (either in part or in full) or should be liquidised. The fact their auctioning vehicles so quickly indicates they took one look at the books and said 'sell everything'.

 

[Xenophon PCDGS]

I had heard that JPT were interested in taking over the company, very soon after the first announcement. Was there any reason why this did not proceed?

 

[vectra33]

I had heard that JPT were interested in taking over the company, very soon after the first announcement. Was there any reason why this did not proceed?

There is no reason to take on a company thats ceased trading,you just end up with a load of problem vehicles ,debts and staff.
Then if you cut the loss making services ,you get the blame.
Far easier just to register the services you want to take over and get a new bus or two to add to your fleet.


dave

 

[Xenophon PCDGS]

I have just received the following information. The following was partly posted on the Facebook page of JPT and partly also what was said to a reporter.

WE HAVE NOT BOUGHT BU VAL, BUT IT WAS NOT FOR THE LACK OF TRYING. WE HAD PROPOSED TO HAVE ALL SERVICES OPERATING BY THE FOLLOWING MORNING, BUT THIS WAS BLOCKED BY A THIRD PARTY BY PRESENTING US WITH A LEGAL DOCUMENT THAT COULD HAVE HAD DRAMATIC CONSEQUENCES.

I wonder who this "third party" might have been? Surely not TfGM?

 

[WatcherZero]

Creditor demanding payment probably.

 

[tbtc]

There is no reason to take on a company thats ceased trading,you just end up with a load of problem vehicles ,debts and staff.
Then if you cut the loss making services ,you get the blame.
Far easier just to register the services you want to take over and get a new bus or two to add to your fleet.


dave

Well put.

 

[Xenophon PCDGS]

Thats what I meant, normally the Recievers would assess whether it could be restarted with a fresh capital injection, sold on as a going concern (either in part or in full) or should be liquidised. The fact their auctioning vehicles so quickly indicates they took one look at the books and said 'sell everything'.

Thank you for your posting. You have made matters very clear.

On a similar vein, do you think Fairway Travel suffered the same fate as Bu Val, at virtually the same time, for a very specific similar reason?