Financial difficulties have forced Rivus Fleet Solutions into administration, with the directors unable to find a viable alternative for the business.
Administrators 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) services to the National Grid, 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 enabling it to continue providing key fleet services to the police force. Approximately 55 employees were immediately laid off.
Rivus managed the maintenance and repair of a fleet of 3,700 emergency, support and general purpose vehicles under its contract with the Met.
Higgins said: “We are delighted to have successfully secured the transaction, which secures 165 jobs, despite Rivus suffering the loss of a material customer late last year.
“We will now focus our efforts on ensuring the smooth continuation of all required post-sale services to seek to minimize disruption to customers outside the market while supporting the Met in all required transitional services.”
The sale has no impact on the business of sister company Rivus Pullman Fleet Solutions trading as Rivus HGV.
National Grid is in the process of creating alternative measures for the SMR of its vehicles. Fleet Manager Lorna McAtear said Fleet News: “We weren’t surprised, but we hoped it wouldn’t happen because it’s a long-standing company.
“It reflects how difficult the market is now, especially for specialty vehicles.
“Since the closure of the Rivus workshops we have been scouting the market and have also mobilized a third of our commercial fleet into our own (33) workshops which we have used as emergency cover.
“We also brought in all the truck fleet management. We are now looking for a third party partner for our commercial fleet.”
Rivus announced a major restructuring in a bid to cut costs in July 2023 after struggling to replace the business loss from the loss of a fleet maintenance contract with BT Group.
The company has closed 48 of its light commercial vehicle (LCV) garages, cutting its existing network by more than half, from 78 to just 30 spaces, including the heavy goods vehicle (HGV) network.
The decision to close so many of its garages, she said, was to reduce a “heavy cost base” related to legacy business systems, aging garages and a “complex people structure”.
While maintaining a limited network in what he described as “strategic locations”, Rivus said some in the Greater London area would be dedicated exclusively to providing critical SMR services to the Metropolitan Police Service from November 1.
It is these garages, along with the staff employed at these locations, that are being moved to the Met.
A spokesman for the Met Police said: “We are aware of the issues that Rivus Fleet Solutions has faced which have resulted in the appointment of administrators.
“In the best interests of continuing to provide services to Londoners and ensuring that frontline officers have access to vehicles, the Met has decided to incorporate elements of the maintenance and repair delivery of our fleet that Rivus has been contracted to deliver.
“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.”
Birmingham-based Rivus Fleet Solutions made around 600 redundant last September when the BT contract was transferred to Holman.