York-based Taxi Firm Six Five Nine Cars Entered into Administration
Written by: Keith Tully
Reviewed: Thursday 1st December, 2016
One of the largest taxi firms operating in the city of York has been entered into administration after succumbing to persistent financial pressures and a cash flow crisis in recent weeks.
Relevant experts from Begbies Traynor were appointed to act as administrators of Six Five Nine Cars Ltd’s financial affairs after a hearing at Leeds county court on November 25th.
A buyer for the business is now being sought with operations expected to continue as normal while that process is undertaken.
Rob Sadler, one of the appointed administrators, said in a statement: “Unfortunately, the business has recently suffered from management issues and cash flow problems.
“This led to a creditor asking the court to put the company into administration. However, it is very much business as usual for customers, staff and drivers.
“We have already received inquiries from a number of interested parties and we are confident that we will be able to find a buyer for the business as a going concern, so delivering the best return possible for creditors.”
Six Five Nine Cars has been providing private hire taxi services to customers across York for more than 15 years and has one of the largest fleets of vehicles in the city.
According to the York Press, some of the company’s drivers have been aware of their employer’s financial problems for some time and have been seeking to find work elsewhere.
Reports in the local newspaper suggest that there are also concerns among some Six Five Nine drivers that they might be left unpaid in light of the taxi firm’s problems and its entry into administration.
Spokespersons for Begbies Traynor and the administrators appointed to the business have said that they are aware that “rival taxi firms in the York area are seeking to play upon drivers’ fears for their own gain”.
“We have already had a number of expressions of interest in the business and are very confident it can be saved,” a spokesperson for the administrators has said.
“We have already contacted drivers to allay their fears and unsubstantiated speculation as to the consequences of administration is unhelpful.”
Author
Keith Tully
Partner
Keith has been involved in Business Rescue since 1992, during which time he’s worked for both independent and national firms. His specialties include company restructuring matters and negotiating with HMRC on his clients behalf.
