1 August 2004
Less than two weeks after being instructed by London bus company Wimco Group Coaches Limited, UHY Hacker Young has sold the assets of the company to Centra in a seven-figure deal.
Andrew Andronikou, partner at our London office was appointed Administrator on Friday 27 August and successfully completed the sale of the business on the same day. The sale will save over 250 jobs.
Troubled Wimco, which has been trading as Mitcham Belle, was established over 40 years ago but has been faced with increased competition over the past decade since the privatization of public transport.
With immediate effect, Centra will take over the operation of seven bus routes in South London, along with 96 buses, 255 staff and premises. Operations will be re-branded Centra London.
The acquisition marks Centra's first foray into the London bus market, where twenty bus operators currently service a market worth £1 billion a year.
Andronikou said:
"This is a prime example of a company experiencing difficulties and recognizing the need for timely intervention. Within two weeks we have been able to effect the sale of a business that has undoubted potential and thereby save jobs."
Paul Churchman, head of operations for Centra, commented: "This is a landmark acquisition for Centra as it means we are now operating in the challenging London transport environment.
"We fully intend to utilize our vast experience to rejuvenate the service provided to the public. The expansion of our fleet to 200 makes us one of the UK's most significant transport companies. It is our intention to continue growing our portfolio."
Director of Performance at London Buses, Clare Kavanagh, said: "The quality of London's bus services is at an all time high and the number of people using the service has grown by an extra 1.8 million passengers per day over the past 4 years.
"I am sure that Centra entering the London market will help to continue to drive up quality and increase competitiveness among London bus operators."
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