I don't they would be exposed to interest rate rises. Most of the buses are leased but the payments for these will be fixed and not dependent on interest rate movements. There is about £700k per year to pay on these and another £700k to pay on other leases - which probably includes the property. If the company went under then most vehicles would be taken back by their leasing company owners who would try and sell them to the highest bidder. There's no reason why a bidder who wants them to run services in Bournemouth would have any advantage over any other bidder. For example Arriva might see these as a good opportunity to rid themselves of some old dross anywhere in the country.
It is surprising that they have gone under in the school summer holidays which you would think would be the best time. But perhaps the cash has simply run out.
I do suspect pensions may be underlying the problem, but this could be a red herring.
MoreBus taking over would no doubt result in the Competitions and Markets Authority taking an interest since there is existing competition. But if there isn't any other bidder then the only alternative would be the business closing, MoreBus registering whatever routes they want (or none) and taking on some staff, probably not by way of TUPE. This may well happen but I don't think the CMA would stand in the way of MoreBus taking over the business if that was the only option, although they would much prefer someone else. Yes things were stupid in Barnstaple and Plymouth but in neither case did the company withdrawing (First) go into admini9stration.
It is surprising that they have gone under in the school summer holidays which you would think would be the best time. But perhaps the cash has simply run out.
I do suspect pensions may be underlying the problem, but this could be a red herring.
MoreBus taking over would no doubt result in the Competitions and Markets Authority taking an interest since there is existing competition. But if there isn't any other bidder then the only alternative would be the business closing, MoreBus registering whatever routes they want (or none) and taking on some staff, probably not by way of TUPE. This may well happen but I don't think the CMA would stand in the way of MoreBus taking over the business if that was the only option, although they would much prefer someone else. Yes things were stupid in Barnstaple and Plymouth but in neither case did the company withdrawing (First) go into admini9stration.