Yellow Buses

[the trainbasher]

Yellow Buses have gone into administration

The bus company, which is in its 120th year, has been handed over to Milsted Langdon LLP, a statement by the accountants said.

A loss of revenue, rising fuel prices and the general rise in inflation have all been blamed as factors for the decision.

In a joint statement, Simon Rowe and Rachel Hotham of Milsted and Langdon LLP said: "We recognise that many people rely on the Yellow Bus network for all sorts of aspects of their daily lives and that for them and the 300 staff employed by the business this is an unsettling time.

"We can recognise this and want to reassure everyone that we and our team are doing all we can to ensure that the business continues to operate as normal as possible under the circumstances and continues to do so into the future."

Yellow Buses, which trades as Bournemouth Transport Limited, has been struggling like all bus companies thanks to the "challenges" of COVID and the lifestyle habit changes which have followed – such as people working from home

The directors of the business have "for some time" been looking for outside investment or buyers for Yellow Buses.

The statement added: "Negotiations with a large national operator have entered the final stages and we hope to be able to conclude within a matter of days."

[Coventrybususer95]

Wonder who is the "National bus company" is

[MW]

NX and Rotala seem to be the favourites. 

Anybody else really will be a surprise!

[Coventrybususer95]

NX and Rotala seem to be the favourites.

Anybody else really will be a surprise!

Hope it's not Rotala anything like the Midlands they will never be on time

[Stu]

NX and Rotala seem to be the favourites.

Anybody else really will be a surprise!

This company is based in Bournemouth, why would NX or Rotala be 'favourites'? Bit out of the way for them!


Sadly I think we're going to see more of this over the next few years, and to an extent we've already seen signs of this in the West Midlands, what with Claribels and Johnsons throwing in the towel and selling their bus operations to a 'bigger' operation.

Smaller independent operators are going to struggle to keep up the pace, and will face stark choices as to whether to sell up or go into administration.

Either way, these smaller operators get 'absorbed' into bigger operating companies.

It is certainly not a good time for any ambitious individual to be starting up a new bus company from scratch, and perhaps some smaller more-successful local operators might be waiting out for a 'decent offer' from a larger group.

[2206]

Go Ahead is the local large operator down there I think.

[BN]

NX and Rotala seem to be the favourites.

Anybody else really will be a surprise!

What makes you say they are favourites? Anybody else would be a surprise, well Hants and Dorset are on the doorstep so my money would be on Go ahead.

[MW]

This company is based in Bournemouth, why would NX or Rotala be 'favourites'? Bit out of the way for them!


Sadly I think we're going to see more of this over the next few years, and to an extent we've already seen signs of this in the West Midlands, what with Claribels and Johnsons throwing in the towel and selling their bus operations to a 'bigger' operation.

Smaller independent operators are going to struggle to keep up the pace, and will face stark choices as to whether to sell up or go into administration.

Either way, these smaller operators get 'absorbed' into bigger operating companies.

It is certainly not a good time for any ambitious individual to be starting up a new bus company from scratch, and perhaps some smaller more-successful local operators might be waiting out for a 'decent offer' from a larger group.

Both NX & Rotala have expressed ambition to expand into new markets, whilst First & Arriva have winded down in recent times.

Rotala have stated their desire to expand across the UK via acquisitions both in current markets and new markets.

NX in recent years have purchased/expanded via NEAT and NETS.

I'm not too familiar with the NX coach network, but NX have also in recent times taken on more coach work 'in house', so perhaps this opportunity would fit in well to cut costs and minimise overheads at group level. The flip side being, Bournemouth is of course home to two large operators, the other being Go Ahead. Not as much of a monopoly on market share.

I think both groups are strong contenders. Any other potential buyer would, for me, be a surprise.

[winston]

This company is based in Bournemouth, why would NX or Rotala be 'favourites'? Bit out of the way for them!

NX already have a large presence on the South Coast with Lucketts Group and already have a depot at Bournemouth International Airport with Solent Coaches being based there.

[Simon Dunn]

NX already have a large presence on the South Coast with Lucketts Group and already have a depot at Bournemouth International Airport with Solent Coaches being based there.

Rotala are not interested in this opportunity.  It is not about money, or desire.  The situation they find themselves is sad.  However,  in the best markets there are 15% less passengers (pre-COVID the best businesses delivered 10% margins), and escalating operating costs way above the stated inflation all transport businesses will face challenges.  A few months back I wrote an article to the DfT, Route One covered this recently and in this article I warned of what was coming.  

What I would say is that I understand this business does  operate National Express contracts and did or still does operate contracts for Megabus as well.

[B61 ANDREW]

What I would say is that I understand this business does  operate National Express contracts and did or still does operate contracts for Megabus as well.

  

BLOTW have some new "NX" coaches listed with Bournemouth.

[Stu]

NX already have a large presence on the South Coast with Lucketts Group and already have a depot at Bournemouth International Airport with Solent Coaches being based there.

Thanks for that info, I was unaware of that.

Still, echoing Simon Dunn's comments, I still think it would be strange for NX to acquire a struggling bus operator in an area that was a long way from their other bus operations, I'm just reminded of how they offloaded their Xplore Dundee operation to McGills.

I stand by the rest of my comment though, we are going to see more smaller independent operators being acquired by larger groups, that would seem inevitable.

[winston]

BLOTW have some new "NX" coaches listed with Bournemouth.

Yellow Buses have only recently come back on the NX network since Covid, I believe they have recently taken over some of the Bournemouth start/end diagrams off NX owned Lucketts

[winston]

Thanks for that info, I was unaware of that.

Still, echoing Simon Dunn's comments, I still think it would be strange for NX to acquire a struggling bus operator in an area that was a long way from their other bus operations, I'm just reminded of how they offloaded their Xplore Dundee operation to McGills.

I stand by the rest of my comment though, we are going to see more smaller independent operators being acquired by larger groups, that would seem inevitable.

The Xplore Dundee disposal could have been a prelude to the proposed Stagecoach merger, as Dundee would have caused competition concerns with Stagecoach also owning Strathtay

[the trainbasher]

Yellow Buses are to withdraw stage carriage services with only the coach business surviving.

ALL services by Yellow Buses will cease operation on Thursday night, as a buyer is not found for the bus side of the business.

The administrators announced they expect an agreement with a buyer to be signed on Friday to save the coach side of the business, saving approximately 50 jobs.

A buyer was not found for the bus operations side of Bournemouth Transport Ltd, which trades as Yellow Buses, it has been confirmed by administrators this evening.

It is still unclear who the buyer will be.

Simon Rowe and Rachel Hotham of Milsted Langdon were appointed as administrators of Yellow Buses on Friday, July 29.

Simon Rowe said: "Whilst we are delighted that the proposed deal will save a significant number of jobs, it is hugely disappointing that we weren't able to secure the remainder of the business and the jobs attached to it.

"We have informed the staff of the position and I would like to thank all of them for their patience and understanding over the last few difficult days. 
"I would also like to thank the other stakeholders who have offered and given their support, in particular BCP and UNITE, both of whom took an active interest and tried to help us present a vision of a sustainable future for Yellow Buses.

"Unfortunately, in the end, the financial challenges which the company faced during its trading life meant that every buyer we spoke to felt that the prospects were not commercially viable.

"The closure of Yellow Buses leaves a gap in the public transport network for the residents and visitors to Bournemouth, Poole and Christchurch  and we are working with BCP and MoreBus to try and minimise the disruption this will inevitably cause."

A further statement will be announced once the deal, expected to be reached on Friday, has been completed.

The historic company went into administration on Friday, July 29, blaming covid, fuel price rises and the rise in inflation as factors for the company's struggles.

The directors of the business have "for some time" been looking for outside investment or buyers for Yellow Buses.

In a statement released on Friday, the administrators said: "Negotiations with a large national operator have entered the final stages and we hope to be able to conclude within a matter of days."