A1 Hire (Perth) Limited has entered administration.
The motor homes provider - which traded under the Scot Motorhomes brand - have ceased trading as administrators review options for the company's business and assets.
The firm cited intense competition and declining customer spending as reasons for the news.
More recently the stock finance facilities available to A1 were reduced and this placed A1 under intense cash flow pressure. Despite extensive efforts to reduce costs and streamline the business, it was not possible to trade through these difficulties and ultimately led to the Director placing A1 into Administration.
An associated company, Swift Labour Supplies Limited (“Swift”), employs the 23 members of staff who worked for A1. Swift will shortly be placed into Liquidation at which point all employees will be made redundant.
KPMG have been appointed as administrators for the business.
Blair Nimmo, Joint Administrator and UK Head of Restructuring at KPMG, commented: “Whilst the increase in the number of holidaymakers opting for a “staycation” over recent years was a boost to A1, more recently intense competition and increasingly cautious consumers have badly impacted both the rental and sales operations of the company.
“We understand the collapse of A1 will be of great concern to its employees and customers. We will be contacting customers who have pre-paid for either the rental or purchase of a Motor Home from A1, and all available support will be provided to both them and of course the employees.
“A1 has an excellent reputation and is well known for its market leading Scot Motorhomes brand. We would encourage any parties with an interest in acquiring the business and / or assets to contact the Joint Administrators immediately.”
