Coach firm collapses with the loss of 40 jobs

LONG established Devon transport firm Dawlish Coaches is to go into liquidation with the loss of nearly 40 jobs.

Employees have been told they will have to apply to the Government’s Redundancy Payments Office to claim outstanding wages, redundancy money, pay in lieu of notice, and holiday entitlement.

Insolvency firm Begbies Traynor were appointed to help the directors put the firm into voluntary liquidation following a board meeting on Tuesday.

The company, based on Dawlish Business Park, ran coach tours across the UK and Europe for several holiday firms, as well as operating local school and public bus services. It had a fleet of around 30 coaches and 37 staff, mostly drivers.

Partner Ian Walker at Begbies Traynor, said he hoped some of them would be hired if another company buys part of the business.

“People are already coming forward interested in acquiring part of the business following the liquidation,” he said.

A meeting of staff is expected to be held when Dawlish Coaches goes into liquidation on Thursday, September 2.

Mr Walker said the company had run out of money and its directors had been pumping their own cash into the business to keep it going.

“It’s sad because it’s a classic case where if we had been involved before the directors had put their last penny into the business and they still had some money available, we could have effected a rescue of the business,” he said.

The firm’s problems were put down to “general decline, increasing diesel and VAT rates, and the recession”.

Some holiday companies which used Dawlish Coaches are understood to have already arranged alternative cover for upcoming trips, while another is providing short-term funding so that its trips can go ahead as planned over the coming days.

No one from the firm wished to comment yesterday.