A automotive rent firm situated inside the West Midlands and Kent went into administration final summer season, and nonetheless owes hundreds of thousands of kilos to collectors.
A HGV automotive rent agency nonetheless owes losses after falling into administration final summer season (Picture: Getty)
A automotive rent firm that entered administration final yr nonetheless has to pay hundreds of thousands of kilos in money owed, with dozens of employees made redundant, in response to stories. Prohire, a supplier of contract rent, fleet administration and rental providers, entered administration in the summertime of 2025.
Nonetheless, a report from the directors discovered that the corporate nonetheless owed hundreds of thousands of kilos to collectors. The specialists stated that “non-preferential unsecured collectors are estimated to be within the area of £28m for Prohire and £19.6m for Prohire Group”.
Collectors are apparently nonetheless owed a whopping £28million (Picture: Getty)
However, the directors revealed that the corporate’s unsecured collectors weren’t prone to safe their losses in a serious blow. The directors stated they discovered that “on present estimates we anticipate that there will probably be inadequate funds to allow a dividend to non-preferential collectors of both Prohire or Prohire Group.”
Prohire was a number one contract rent agency primarily based throughout a number of places round Stoke-on-Trent within the West Midlands. Additionally they had staff working for them in Tunbridge Wells in Kent within the South East of the UK.
The rent firm is known to have gone into administration early in the summertime of 2025 for a lot of causes. These cited by the directors embrace a contraction in margins on contract rent gross sales.
They defined this probably positioned “strain on buying and selling efficiency and profitability” which led to “important losses”. The administrator even defined that the corporate incurred losses of round £1.5m in FY25 on the disposal of autos alone.
Dozens of staff misplaced their jobs when Prohire went into administration final summer season. When the enterprise ceased buying and selling, 54 staff had been made redundant, with 29 people retained to help the directors.
Nonetheless, all remaining staff had been made redundant in August in a serious blow to the over 80 employees members. In line with the report, firm shareholders rejected requests for additional funding when it turned clear hundreds of thousands had been wanted to make sure the survival of the enterprise.
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The directors stated: “This meant the group had inadequate funds remaining to proceed buying and selling and no affordable prospect of extra funds being secured on needed timescales.
“The businesses’ administrators subsequently concluded throughout week commencing Monday 23 June that the businesses would want to enter an insolvency course of.”
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