Zolfo Cooper hired as administrator of failed credit hire firm after major client lost
Failed credit hire firm Drive Assist’s administrators have made 259 of the group’s 640 staff redundant with immediate effect.
Restructuring firm Zolfo Cooper has been hired as the administrator for Drive Assist after the loss of a major customer put the company under strain.
Zolfo Cooper partners Alastair Beveridge, Ryan Grant and Simon Wilson were appointed joint administrators of Drive Assist and its subsidiaries Millennium Motor Group and Sol Car Rentals yesterday.
Drive Assist is headquartered in Tamworth, Staffordshire, and has a further 14 locations across the UK. In addition to leasing replacement vehicles, Drive Assist sells its ex-fleet vehicles at Nottingham Autopark, part of the Millennium Motor Group.
The administrators were appointed as a result of the companies experiencing considerable working capital management issues and subsequent cash flow problems.
Beveridge said in a statement: “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.”
9 Readers' comments