Receiver shuts Boro'line
Page 18
If you've noticed an error in this article please click here to report it so we can fix it.
• The receiver at Maidstone Boroline has finally closed the council-owned company, which it has been trying to sell since mid-February (CM 27 Feb-4 March).
Boroline's remaining fleet of 44 buses, its Maidstone depot, plant and stores have all gone to Chatham-based operator Maidstone & District Motor Services for £975,000. The 100 staff have been made redundant, but 12 drivers will be taken on by Maidstone & District to run Kent County Council and Maidstone Borough Council contracts which it took over from Boroline.
In February the London part of Boro'line's business was snapped up by the Proudmutual Group, the holding company of Kentish Bus and Northumbria Motor Services.
Receiver KPMG Peat Marwick says: "After three months of marketing and, advertising it was obvious we were not going to sell the Maidstone part of the business.
"You only keep a company as long as there is a realistic prospect of selling it."
The Proudmutual Group had originally offered to buy both parts of the business, which turned over just under £8m in the year to 31 March 1991 with losses of £800,000, but it withdrew its bid. Other bids, including one from the management and staff, failed.
KPMG estimates that there are about 300 unsecured creditors, owed some £600,000. It will not say if they will receive any payment. Maidstone Borough Council is believed to be the biggest unsecured creditor, at £100,000. It will decide its action when KPMG gives it a statement later this week.