Financial difficulties forced Rivus Fleet Solutions into bankruptcy because management could not find a viable alternative for the company.
Administrators Tim Higgins, Jane Steer and Zelf Hussain of PricewaterhouseCoopers (PwC) were appointed on Friday (21 June).
Rivus Fleet Solutions has provided service, maintenance and repair (SMR) to National Grid, the Metropolitan Police Service (MPS) and National Highways, among others.
Following the appointment of liquidators, the majority of Rivus Fleet Solutions’ assets were sold to the UK Police, preserving 165 jobs and enabling the company to continue providing essential fleet services to the police. Approximately 55 staff were made redundant immediately.
As part of its contract with the British Police, Rivus was responsible for the maintenance and repair of the fleet of 3,700 emergency, support and multi-purpose vehicles.
Higgins said: “We are delighted to have completed a transaction that secures 165 jobs, despite Rivus losing a key customer at the end of last year.
“We will now focus our efforts on ensuring a smooth continuation of all services required after the sale, both to minimise disruption to non-Met customers and to support the Met with any transitional services required.”
The sale has no impact on the trading business of Rivus’ sister company Pullman Fleet Solutions, which operates under the name Rivus HGV.
National Grid is in the process of making alternative arrangements for the SMR of its vehicles. Fleet Manager Lorna McAtear said Fleet News: “We were not surprised, but hoped that it would not happen because it is a traditional company.
“It is a reflection of how difficult the market is at the moment, especially for specialty vehicles.
“Since the closure of the Rivus workshops, we have been exploring the market and have also mobilised a third of our commercial fleet to our own (33) workshops, which we use as emergency cover.
“We have also brought the entire management of our truck fleet into the company. We are now looking for an external partner for our commercial fleet.”
Rivus announced a major restructuring to cut costs in July 2023 after the company struggled to offset the loss of revenue from the loss of a fleet maintenance contract with BT Group.
The company closed 48 of its light commercial vehicle (LCV) workshops and reduced its existing network by more than half, from 78 to just 30 sites, including its heavy commercial vehicle (HGV) network.
According to the company, the decision to close so many workshops is intended to reduce a “high cost base” related to outdated business systems, outdated workshop equipment and a “complex personnel structure”.
While a reduced network will be maintained at so-called “strategic locations”, Rivus announced that some sites in Greater London will be dedicated exclusively to providing mission-critical SMR services to the Metropolitan Police Service from 1 November.
It is these garages that will be transferred to the Met, along with the staff employed there.
A Metropolitan Police spokesman said: “We are aware of the challenges faced by Rivus Fleet Solutions which have led to the appointment of liquidators.
“In order to continue to provide a service to Londoners and ensure officers in the field have access to vehicles, the Met has decided to carry out some of the maintenance and repairs to our fleet that Rivus was contractually obliged to carry out ourselves.
“We are working with Rivus administrators to ensure a smooth transition.
“This decision allows us to ensure continuity of services, protect employee roles and ensure our fleet remains operational.”
Birmingham-based Rivus Fleet Solutions laid off around 600 staff last September when the BT contract was transferred to Holman.