More than 60 workers across the north and north east have been made suddenly redundant following the collapse of a Scottish vehicle rental company.
Staff in Aberdeen and Nairn were among hundreds told they were to lose their jobs after Airdrie-based TOM Group Limited ceased trading.
Administrators EY stepped in yesterday, resulting in 342 job losses across the UK. A further 86 staff are expected to be cut in four weeks time.
Employees were told the news yesterday at the firm’s branches.
The group owned Caledonian Truck and Van Limited and TOM Vehicle Rental Limited.
A total of 63 people have been made redundant in the north and north east, with 45 axed in Aberdeen and 18 losing their jobs in Nairn.
Some staff are being retained for the next four weeks to aid administrators in the winding up of the businesses.
Ten more will then go at the Aberdeen and Nairn sites.
The Group blames the challenging trading conditions in recent months and said it made considerable efforts to restructure its operations in order to save the company.
TOM Vehicle Rental Limited employed 6 people in Aberdeen and 18 in Nairn and is letting all but 5 go.
In Aberdeen, they owned the Mercedes Commercial Vehicle franchise and last night staff leaving the Altens site were too upset to speak about the shock announcement.
Joint administrators Colin Dempster and Fiona Taylor from EY last night released a statement which said the owners had tried to sell the failing company, but buyers could not been found for either TOM Vehicle Rental Limited and Caledonian Truck and Van Limited.
A third subsidiary, the Kilmarnock-based Alistair Fleming Ltd, is, however, in the process of being sold.
That sale should see all 21 of its employees being transferred to the new business.
The company also had premises in Birmingham, Broxburn, Castleford, Dundee, London, Manchester and Nottingham.
Colin Dempster, Joint Administrator, said: “The Group has incurred operational difficulties and associated liquidity problems in recent years that reflect low utilisation of their rental vehicles, as a result of a competitive market and changing customer preferences.
“It is with regret that 342 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.
“The administrators and fleet funders are contacting customers as a matter of urgency to ensure that the necessary arrangements are in place for them to experience as little disruption to service as possible.”
One customer, who wished to remain anonymous, said he had a Mercedes vehicle in being serviced at the Altens garage and had been told yesterday that he could not collect it.
Service manager at the nearby Mercedes car showroom, Barry Middleton, last night wanted to allay any fears his customers may have regarding the collapse of the commercial vehicle site and said: “We have no affiliation with the commercial vehicles site. This will in no way affect our customers at all.
“The TOM Vehicle Rental Ltd held the franchise for the Mercedes Commercial Vehicles.”