Igo (west Midlands) goes into administration

[bussnapperwm]

5 routes from this operator have changed hands this week following them falling into administration.

The business Desk reports that Accessible Transport Group, which owns Ring and Ride and Igo buses, employs 700 staff and operates more than 600 vehicles from nine depots across the West Midlands, has called in administrators.

Speculation is that the reason that they have called in administrators is that they have been making losses for a long time, following tender bids to the West Midlands Combined Authority which have significantly undercut other operators.

The routes which have been put out to emergency tender, and have changed operator, are as follows

53 Wolverhampton to Bilston, now operated by Diamond Bus
69 Solihull to King's Heath, now operated by Johnson's
80 Bilston circular, now operated by Diamond Bus
326 Bilston to Bloxwich, now operated by Diamond Bus
530 Wolverhampton to Bilston, now operated by Banga Bus

 

[Anthony ross]

It makes you wonder how a charitable organisation that big can go into administration

 

[Cesarcollie]

It makes you wonder how a charitable organisation that big can go into administration

Could be many reasons, but most a function of expanding too fast or into areas which the management don’t understand.

 

[Observer]

It makes you wonder how a charitable organisation that big can go into administration

Undercutting contracts and bidding peanuts for them usually does the trick!

 

[Ginga]

Most of the buses are from Dawsons Rentals, who charge over the odds. But don't do proper credit checks.

 

[carlberry]

Most of the buses are from Dawsons Rentals, who charge over the odds. But don't do proper credit checks.

For Dawsons as long as the last bill has been paid it's not a big loss and the vehicle is usually recoverable. It's likely they'd be more worried about how the operator is going to maintain the vehicle in reality.

 

[EnviroExplorer]

Personally I would say that Igo have just been hit by the general crisis the industry is going through these days.
They haven’t really been expanding of late, in fact losing numerous contracts, and the business was really at its peak in mid 2017-18 I would assume (I haven’t been keeping complete track of number of routes etc). The problem has probably lay in that they have been consistently bringing in newer buses over the 12-18 months. Some routes have required them for tenders I suspect, but some are routes which really don’t sustain new buses. They must have had good intentions as an Enviro 200 MMC demonstrator had been on loan just a few weeks ago.

I feel sorry for the management of Igo though as I’m writing this, they have been trying to modenrise the fleet, and even brought in a new sleek design with it, but obviously theyve used too much of the funds doing so.
I would like to see someone like Hackney Community Transport / CT Plus to come in and take over the business, the Bristol side of things certainly looked smart today, and I have noticed a fair few new buses for their Yorkshire business, but being part of a group, I assume it’s easier to sustain new buses. Something I will keeping an eye on, though was led to believe today was the end for Igo, though the network West Midlands website suggests otherwise at the moment !

I have inserted a photo of one of their 3 Optare Metrocitys used on route 145. This route doesn’t appear to sustain such buses, linking to my comments above

 

[TheGrandWazoo]

Personally I would say that Igo have just been hit by the general crisis the industry is going through these days.
They haven’t really been expanding of late, in fact losing numerous contracts, and the business was really at its peak in mid 2017-18 I would assume (I haven’t been keeping complete track of number of routes etc). The problem has probably lay in that they have been consistently bringing in newer buses over the 12-18 months. Some routes have required them for tenders I suspect, but some are routes which really don’t sustain new buses. They must have had good intentions as an Enviro 200 MMC demonstrator had been on loan just a few weeks ago.

I feel sorry for the management of Igo though as I’m writing this, they have been trying to modenrise the fleet, and even brought in a new sleek design with it, but obviously theyve used too much of the funds doing so.


I have inserted a photo of one of their 3 Optare Metrocitys used on route 145. This route doesn’t appear to sustain such buses, linking to my comments above

View attachment 60695

Surely if these are tendered services, and the revenue doesn't support new vehicles, it suggests that they have got their sums wrong.

 

[Typhoon]

The routes which have been put out to emergency tender, and have changed operator, are as follows

69 Solihull to King's Heath, now operated by Johnson's

Now that is an interesting development by Johnson's. They have been embedded in Solihull for some time but now into urban Brum (although its only an emergency tender of course).

 

[Wirewiper]

Having socially-necessary bus services operated by so-called "not-for-profit" organisations does not always work out. The finances still need to be managed with "due diligence" and there are many organisations in the charity sector that do not have the skilled staff or volunteers to do that effectively. Also if the services are under-funded in the first place or lose essential funding, they risk no longer being financially viable.

In Torbay, the Torbay Community Development Trust suspended its two-route Our Bus Torbay operation in December as it was losing £1,000 a week, which was undermining the viability of the Trust as a whole. Note that Torbay Council does not support any bus services financially, although they did make a one-off grant to Our Bus Torbay towards the purchase of a vehicle.

 

[Alex 2901]

Now that is an interesting development by Johnson's. They have been embedded in Solihull for some time but now into urban Brum (although its only an emergency tender of course).

Not really, the 69 was a Johnsons route until 2016, and i could be wrong; but I'm pretty sure it's predecessor, the 669 was also Johnsons run for a bit (since 2013 at least)

 

[bussnapperwm]

Not really, the 69 was a Johnsons route until 2016, and i could be wrong; but I'm pretty sure it's predecessor, the 669 was also Johnsons run for a bit (since 2013 at least)

With a Diamond stint before or between IIRC

 

[borage]

Councils bail out 600-vehicle community bus operator

Duff & Phelps’ Matt Ingram, Joint Administrator, said: “We can now confirm that we have agreed funding from Birmingham City Council and Transport for West Midlands that will ensure that there is no interruption to the day-to-day services that the Charities provide.

“This is great news for those who rely on these accessible transport services here in the West Midlands. The call centre remains fully operational and therefore we would urge them to continue to contact their service provider in the normal way,” he added.

The reasons for the insolvency are unclear. In the last filed accounts, ATG Ltd in 2017 said it faced a reducing grant from West Midlands Combined Authority, from £7.8m to £7.5m in 2017. In 2017/18 the grant dropped to £7.3m.

 

[Alex 2901]

New operators for the former Igo routes

10, 10H, 10S - NXWM Birmingham Central
Walsall 19 - Arriva Midlands Cannock
Frankley 19 - Diamond Redditch
22, 53 - Diamond Tividale, until 21st April.
25 - Arriva Midlands Cannock
36 - NXWM Birmingham Central
38 - The Green Bus
39, 39A - Kevs Coaches
42 - Kevs Coaches
50 - Select Bus Services
57 - Diamond Tividale
69 - Johnsons Excelbus
80 - Diamond Tividale
89 - Diamond Redditch
96 - Service Withdrawn.
99 - NXWM Acocks Green
145, 145A - No operator currently confirmed
208 - NXWM Pensnett, until 21st April.
326 - Diamond Tividale
539, 580 - NX Coventry
A12 - NX Acocks Green

A number of contract changes were already planned for 21st April; which were to see Igo lose the 22, 39/A, 53 & 208.

 

[asb]

When from, Alex? Are they all the 21st April?

 

[Typhoon]

When from, Alex? Are they all the 21st April?

According to the Diamond facebook page https://www.facebook.com/diamondbuses/posts/10158503999227178

Diamond Bus will commence operation of additional former igo services, from Monday 1st April 2019

Service 19 - Maypole to Rubery via Cotteridge, Northfield & Longbridge
Service 22 - Wednesbury to Wolverhampton via Coseley
Service 53 - Wolverhampton to Rocket Pool via Wednesfield & Bilston
Service 89 - Solihull to Coventry via Meriden & Balsall Common

NEx routes from same date https://nxbus.co.uk/west-midlands/information/service-changes/national-express-west-midlands-to-run-some-igo-services-from-1st-april-2019

 

[Alex 2901]

When from, Alex? Are they all the 21st April?

All that I've listed are from Monday 1st April.

 

[Typhoon]

New operators for the former Igo routes

145, 145A - No operator currently confirmed

I would welcome some detail of the 145. I used to use it for work many moons ago and it was not exactly over busy even in the peaks. After a brief excursion on the edge of Brum it heads for an hour in unfriendly bus territory in Worcestershire (including a bit that seems to have been tacked on to it south of Bromsgrove - used to be 141, I seem to remember). I guess it must be subsidised? By Worcestershire?? However it maintains an hourly frequency. I'd be surprised if it has the numbers to maintain this, unless the population of the villages around Bromsgrove have suddenly taken to the bus.

 

[winston270twm]

I would welcome some detail of the 145. I used to use it for work many moons ago and it was not exactly over busy even in the peaks. After a brief excursion on the edge of Brum it heads for an hour in unfriendly bus territory in Worcestershire (including a bit that seems to have been tacked on to it south of Bromsgrove - used to be 141, I seem to remember). I guess it must be subsidised? By Worcestershire?? However it maintains an hourly frequency. I'd be surprised if it has the numbers to maintain this, unless the population of the villages around Bromsgrove have suddenly taken to the bus.

The 145/145A are tendered routes supported by Worcestershire CC. I understand WCC have yet to re-tender the route.

 

[Typhoon]

The 145/145A are tendered routes supported by Worcestershire CC. I understand WCC have yet to re-tender the route.

Thanks. I guessed it would have to be but Worcestershire have never been the most bus friendly council. It will be interesting to see who would want to take it on.

 

[winston270twm]

Thanks. I guessed it would have to be but Worcestershire have never been the most bus friendly council. It will be interesting to see who would want to take it on.

No, totally agree re: WCC. It was operated by Diamond Bus prior to Igo winning the tender, it would make sense for Diamond to win the new tender & operate it out of Kidderminster Depot, otherwise there's also Kev's / Aston's / LMS Travel that all operate within the Bromsgrove & Droitwich area.

 

[Shrewbly]

I would welcome some detail of the 145

I'll help out if I can, the 145 is my local bus and it's certainly been through a lot of changes over the years; the current route is a combination of 140/141 and replacement of part of a Barnt Green service. Diamond used to run the 141. Incidentally when igo took over, Diamond started a competing service on our section which gave a 30 minute service! Diamond pulled that after about 9 months.

It's a long route and I don't know how it loads over the full length, but when I've used it (in the Bromsgrove area) it's been reasonably well used (presumably leading to the appearance of some new buses last year). There are some new flows that it serves which may have helped - Bournville College in Longbridge at the North end, the new Bromsgrove railway station, and some additional housing. I've certainly used it more since the new rail services started at Bromsgrove. It also doubles up as a school service in Bromsgrove (standing room only on those services). The section right at the South end is usually lightly loaded though, where it It duplicates First's 144, and this was reduced to 2 hourly last year.

Worcestershire County Council did propose removing all bus subsidies a couple of years ago, but in the end retained some subsidies which I'm guessing would include the 145.

In terms of the future I've no idea, but last week local rumour suggested that the service was ending on Saturday 30th March (along with most of the rest of igo's services), but interestingly, as of yesterday the service was still running complete with igo buses.

 

[Typhoon]

I'll help out if I can, the 145 is my local bus and it's certainly been through a lot of changes over the years; the current route is a combination of 140/141 and replacement of part of a Barnt Green service. Diamond used to run the 141.
...

Worcestershire County Council did propose removing all bus subsidies a couple of years ago, but in the end retained some subsidies which I'm guessing would include the 145.

In terms of the future I've no idea, but last week local rumour suggested that the service was ending on Saturday 30th March (along with most of the rest of igo's services), but interestingly, as of yesterday the service was still running complete with igo buses.

This is more than helpful, thank you. It certainly seems to have bucked up. I was aware of the Bournville College move. Now the 'standing room only' does surprise me as it certainly wasn't when I travelled on it. I used to get through library books like no tomorrow. I used to chat to some of the drivers and they would confirm that it (the northern part) was a 'quiet' route. Maybe school transport has been cut back. From Barnt Green lots of pupils used to catch the train. Servicing the station would help but mainly in the peaks.

I knew about WCC's reluctance to subsidise, hence my questioning whether it was subsidised. They certainly won't want to spend a penny more than they have to.

According to the igo website (https://igobuses.org/)

The business will trade until further notice under the Joint Administrators’ supervision whilst a buyer for the business and assets of the Company is sought, or services are migrated to alternate operators in conjunction with local authorities.

I've sympathetic to the loyal drivers who stay - no certainty of future employment. Its not a route for someone learning it from scratch.

 

[Shrewbly]

I don't see the 145 services that divert to South Bromsgrove High School that frequently, so it may have been unusual, but last time I was on the north bound it was standing from the school. However I did happen to see the southbound one from the school yesterday and that was busy but had seats free. Looked like one of the drivers was being given route training too.

I can't imagine that the route is busy through the lanes around Barnt Green though.

By the way I was also in South Birmingham yesterday and was surprised to see a couple of out of service igo buses being driven around in different places.

 

[Shrewbly]

It's been reported on Midland Red Forum.
Diamond will take over the 145 from next Monday.

Well that would make sense; Diamond used to run it (although in my experience it wasn't very reliable in those days).

 

[winston270twm]

I don't see the 145 services that divert to South Bromsgrove High School that frequently, so it may have been unusual, but last time I was on the north bound it was standing from the school. However I did happen to see the southbound one from the school yesterday and that was busy but had seats free. Looked like one of the drivers was being given route training too.

I can't imagine that the route is busy through the lanes around Barnt Green though.

By the way I was also in South Birmingham yesterday and was surprised to see a couple of out of service igo buses being driven around in different places.

I assume certain trips on the 145 must get busy, but overall as it's tendered, it can't be a commercially viable route.

So of the Igo buses you've seen driving around *could* be returning to leasing companies, I believe a large portion of their fleet was leased rather than owned.