Financial problems have forced Rivus Fleet Solutions into bankruptcy, with directors failing to find a viable alternative to the business.
Directors Tim Higgins, Jane Steer and Zelf Hussain of PricewaterhouseCoopers (PwC) were appointed on Friday (June 21).
Rivus Fleet Solutions provided service, maintenance and repair (SMR) for National Grid, the Metropolitan Police Service (MPS) and National Highways, among others.
Following the appointment of administrators, the majority of Rivus Fleet Solutions’ assets were sold to the Met, securing 165 jobs and continuing to provide vital fleet services to the police. About 55 staff were immediately dismissed.
Rivus managed the fleet maintenance and repair of 3,700 emergency, support and general purpose vehicles as part of its contract with the Met.
Higgins said: “We are pleased to have successfully secured a transaction that secures 165 jobs, despite Rivus suffering the loss of a key customer late last year.
“We will now focus our efforts on ensuring the smooth continuation of all services required post-sale, to both minimize disruption to non-Met customers and to support the Met with any transition services required.”
The sale will not affect the trading activities of Rivus’ sister Pullman Fleet Solutions, trading as Rivus HGV.
National Grid is in the process of making alternative arrangements for the SMR of its vehicles. Chief of Fleet Lorna McAtear told the story Fleet news: “We weren’t surprised, but we were hoping that this wouldn’t happen because it’s a long-standing company.
“It reflects how difficult the market is now, especially for specialist vehicles.
“Since the closure of Rivus’ workshops, we have explored the market and have also mobilized a third of our commercial fleet in our own (33) workshops which we used as emergency cover.
“We have also taken all our truck fleet management in-house. We are now looking for an external partner for our commercial fleet.”
Rivus announced a major restructuring in July 2023 in a bid to reduce costs after struggling to replace business lost from the loss of a fleet maintenance agreement with BT Group.
The company closed 48 of its light commercial vehicle (LCV) garages, reducing the existing network by more than half, from 78 to just 30 locations, including the heavy goods vehicle (ZWV) network.
The decision to close so many of its garages, the company said, was to reduce its “heavy cost base” associated with outdated business systems, antiquated garage facilities and a “complex people structure.”
While maintaining a limited network in what it describes as “strategic locations,” Rivus said that from November 1, some in the Greater London region will focus solely on providing mission-critical SMR services to the Metropolitan Police Service.
It is these garages and the staff working at these sites that will be transferred to the Met.
A spokesperson for the Met Police said: “We are aware of the challenges Rivus Fleet Solutions has faced, which resulted in the appointment of administrators.
“In the best interests of continuing to provide a service to Londoners and ensuring frontline officers have access to vehicles, the Met has decided to suspend elements of the delivery of the maintenance and repair of our fleet, for which Rivus has been contracted had closed, to take it under its own management.
“We are working with Rivus administrators to ensure a smooth transition.
“This decision will ensure continuity of service, protect staff roles and keep our fleet on the road.”
Rivus Fleet Solutions, which is headquartered in Birmingham, laid off around 600 staff last September when the BT contract was transferred to Holman.