Thursday, 26 December 2013

Statement re suspension of trading

On 18 December following consultation with the finance company that underwrites our VOSA financial standing and invoice discounting facilities, a decision was made for Classic Bus North West Ltd (CBNW Ltd) to suspend trading. The services being operated on the CBNW Ltd licence were therefore suspended, affecting services 80 (Blackpool - Poulton - Preston) and the Red Rocket Express (although the operation of this was going to be paused after Xmas).
The decision was taken against a background of increasing amounts owed to the business and losses on the bus refurbishment side of the business, affecting cash flow and our ability to keep pace with payroll obligations. Some staff have been laid off and it is likely that there will be redundancies. The decision DOES NOT affect service 22, which operates on the Oakwood Travel licence, and we are now working closely with our principal stakeholders to develop a fresh and sustainable operation through Oakwood Travel Services Ltd.