When a bus/coach operator has folded

[Martin1988]

If anyone is able to answer I'd be interested to find out, on those occasions where a bus/coach operator has suddenly folded what generally happens if the company has vehicles in service at the time they recieve the news and with passengers traveling on them?

Would passengers simply be told the bus company has folded and to get off or would drivers generally complete the route to avoid passengers being stranded?

Or in situations like this does the operator generally cease trading from the end of that working day in order to ensure passengers are not left stranded?

 

[Teflon Lettuce]

there doesn't seem to be any hard and fast rule. It is usual for a company to keep trading to the end of the working day. However, there have been instances where suddenly a company has shut up shop there and then, with drivers being instructed to drop off passengers at their destination this happened with London Easylink when Durham Travel Services {it's parent} shut up shop suddenly

 

[richw]

All the ones I’ve been aware of has shut up over night so haven’t been aware of any issues with passengers

 

[Bletchleyite]

I've observed it is much more likely that it will happen overnight, most likely because the management have been working through the night to try to work out how to save the company but have failed, made an announcement, locked the gates and gone to bed.

 

[richw]

Many have ceased in line with insurance expiry at midnight. Western greyhounds failure coincided with their annual insurance policy expiring and failure to get credit facility granted to renew

 

[Martin1988]

Thanks to those who have taken the time to respond.

I'm pretty sure I remember reading that when Hookways folded back in 2011 it happened part way through the day resulting in some of their NX workings being abandoned mid route and other operators having to take over for the rest of the journey.

 

[TheGrandWazoo]

Thanks to those who have taken the time to respond.

I'm pretty sure I remember reading that when Hookways folded back in 2011 it happened part way through the day resulting in some of their NX workings being abandoned mid route and other operators having to take over for the rest of the journey.

As others have intimated, it usually depends on the reason why a business has folded.

Most are for financial reasons and they will usually appoint administrators that become effective at the end of a days' trading. If it is because insurance cover has been withdrawn, then that is immediate. In the case of Western Greyhound, cover wasn't withdrawn but expired. That led to some drivers (without their knowledge) running without insurance as they finished post midnight.

 

[Teflon Lettuce]

As others have intimated, it usually depends on the reason why a business has folded.

Most are for financial reasons and they will usually appoint administrators that become effective at the end of a days' trading. If it is because insurance cover has been withdrawn, then that is immediate. In the case of Western Greyhound, cover wasn't withdrawn but expired. That led to some drivers (without their knowledge) running without insurance as they finished post midnight.

so why did London Easylink finish abruptly during the day? AIRI the company was put into administration, yet the buses were ordered back to the depot immediately in the middle of the day...

 

[TheGrandWazoo]

so why did London Easylink finish abruptly during the day? AIRI the company was put into administration, yet the buses were ordered back to the depot immediately in the middle of the day...

As I said "usually". Was it because of the particular circumstances of the Durham Travel collapse and the activities of Peter Lee?

IIRC, he was on holiday and it was his business partner, Eric Bowerbank, discovered the issue. After auditors uncovered the true extent of the finances, it might have been that there was simply no money at all. In that situation, they can't allow the situation to get even worse. Mind you, it is a long time ago so I'd have to research!

Eric Bowerbank was a decent bloke, not connected with the fraud, and was left utterly broken.

 

[Teflon Lettuce]

As I said "usually". Was it because of the particular circumstances of the Durham Travel collapse and the activities of Peter Lee?

IIRC, he was on holiday and it was his business partner, Eric Bowerbank, discovered the issue. After auditors uncovered the true extent of the finances, it might have been that there was simply no money at all. In that situation, they can't allow the situation to get even worse. Mind you, it is a long time ago so I'd have to research!

Eric Bowerbank was a decent bloke, not connected with the fraud, and was left utterly broken.

IIRC the full story of the actual collapse never really came out. It seemed odd at the time that the buses were ordered off the road immediately... as said above, if receivers are appointed it is usual for services to operate at least to the end of the working day. Also IIRC it came as a total shock to TfL.. the first they knew there was a problem was when the buses started disappearing off the road. Could it be that the police ordered the immediate cessation of all activity due to the criminal investigations that rapidly ensued?

 

[Mwanesh]

so why did London Easylink finish abruptly during the day? AIRI the company was put into administration, yet the buses were ordered back to the depot immediately in the middle of the day...

Could have been an insurance thing as pointed out .The minute adminstrators are called in some creditors withdraw cover immediately to reduce exposure .

 

[TheGrandWazoo]

IIRC the full story of the actual collapse never really came out. It seemed odd at the time that the buses were ordered off the road immediately... as said above, if receivers are appointed it is usual for services to operate at least to the end of the working day. Also IIRC it came as a total shock to TfL.. the first they knew there was a problem was when the buses started disappearing off the road. Could it be that the police ordered the immediate cessation of all activity due to the criminal investigations that rapidly ensued?

Given all the circumstances, it perhaps isn't a surprise that the immediate closure was a-typical as well!

 

[robertclark125]

Many years ago, when Tillingbourne buses collapsed, services were stopped mid route.