What if Preston bus is sold and goes bust?

[PR1Berske]

As my user name suggests, I live in Preston

The problem we now have in Preston is one of utter confusion. Stagecoach buses which used to give change are now Preston Bus services which don't. Routes which were clear are now altered and obscure. Competition seems to have mixed up the route focus - the Orbital seems to have been bunked, for one, the loss of punctuality and cleanliness is very obvious.

Preston Bus was not perfect. Stagecoatch certainly are not perfect. But what Preston has now is a clumsy comprimise. Something needs to be resolved.

 

[johnluke]

stagecoach are not really slinging their hook,it was what i wished for also,,have a look
http://www.lep.co.uk/news/lep-business/end_of_year_for_preston_bus_sale_1_978320

 

[robertclark125]

Incidentally, the door could, and I stress, could be open for Stagecoach to ernd up buying back Preston Bus a long way in the future. A precedent has already been set.

In 1996, Stagecoach holdings boguht out CHL, the old cambus oepration. As a requirement of the deal, Stagecoach were required to dispose of MK Metro and Huntingdon depot of United counties. These were sold to Julian Peddle, who later sold Huntingdon depot to Blazefield. The oepration was rebranded as Huntingdon and District. But a few years later, 2002, it was sold to local firm Cavalier Contracts.

In 2008, Stagecoach bought out Cavalier Contracts, including their operations in Huntingdon, bringing it back into the Staegcoach fold. Since then, the OFT has cleared the deal. So, technically, a precedent has been set.

 

[robertclark125]

Let's try and predict the future, using our crystal balls. Does anyone out there think it likely that, someday, Stagecoach becomes the dominant operator in Preston, and perhaps even buys Preston Bus again?

 

[johnluke]

my wish is for the staff to take it back but it wont be as stronger company than before so they wont be able to take on stagecoach,,,stagecoach are still there.they are keeping the busiest route number 11 also keeping number9 which parralels the number 16 also they are sole providers of the penwortham route,,they are very crafty,, whilst my first choice would be the staff,, my second choice would be the go-ahead group as they tend to keep the company livery,,, to answer the question, stagecoach could be the dominant one if the company fails under the staff and management

 

[robertclark125]

http://ukdata.com/company/07152290/PRESTON-TRANSPORT-LTD

Is that the same Preston transport that is bidding to buy the company? Interesting that the business is based in Lytham St Annes.

So once the business is sold, what does Stagecoach do next?
--- old post above --- --- new post below ---
Does everyone on here think that Stagecoach have decided to sell the firm to its employees, knowing that they cannot compete on a big scale with Stagecoach? Also, once sold, what happens if another smaller oeprator moves in and competes directly on say, two or three routes, with Preston Bus?

 

[johnluke]

my heart is with a managemant buy out ,,as im sure stagecoach would prefer,stagecoach keep service 11 and they also have 9 which runs parallel to preston bus 16,but as my prefered option is a worker/management a big company like go.ahead would be more suited as they can compete,the chief executive of go,ahead used to be md of burnley&pendle transport

 

[mbonwick]

Rumour is that the employee bid has been rejected...

 

[robertclark125]

Do these rumours say who else has bidded?

 

[WatcherZero]

Still waiting for official stock market notification but it seems Preston Bus has been won by Midlands based Rotala.

http://www.lep.co.uk/news/preston_bus_sold_again_1_2944222

The company buys up existing bus/coach operations and usually renames them 'Connect (region)'

 

[trentside]

Rotala also own the Diamond business in the West Midlands.

They also share management with Heanor based Yourbus - though the company is technically independent of Rotala.

In truth, they appear to be a credible and successful business, and will hopefully offer a secure future for Preston Bus.

 

[johnluke]

i was quite surprised that rotala came out of the hat winning the bid for preston bus as they are the only smaller company to have a former municipal,,as far as i know,,having seen their style of operations ,they have changed liverys and names from other failing companies they bought and turned them around but they are reigonal operations whereas preston bus is a town company,,would they change that i ask? is there any need to? as people know preston bus from history which has a loyal base

 

[WatcherZero]

Preston Bus has been sold to Midlands company Rotala a £3.2m deal, as the Evening Post revealed last week.


The deal, confirmed by the stock market-listed transport group on Tuesday, is subject to the company getting the go-ahead from its shareholders at its annual meeting due to be held in May.

It brings to an end months of negotiations after the Competition Commission ordered owners Stagecoach to sell it in November 2009 amid fears it had led to a “substantial lessening of competition” in the city.

Rotala told sheraholders that the deal would see it take on assets worth £3m, including its fleet of 85 vehicles and the depot on Deepdale Road, Preston which is owned by the company.

Chairman John Gunn said: “This acquisition represents an exciting new phase in the development of the Rotala group.

“The extension of our network up the M6 to Preston will bring us a presence in a wholly new area of operation where the development potential is considerable.

“I am confident that this acquisition will much enlarge the activities of the company and deliver further increases in shareholder value in due course.”

Rotala revealed it had got the cash to complete the deal with a hire purchase facility, secured on Preston Bus’s fleet of vehicles, a bridging loan from the group’s bankers of £617,500 and the remainder from the existing banking facilities of the group.

It said the loan is repayable in two stage with £460,000 due on February 28 and £157,500 on May 28.

The group added that the company will seek authority from its shareholder to raise up to 5% of its issued shares on the Alternative Investment Market (AIM) when it holds its annual general meeting in May.

http://www.lep.co.uk/news/lep-business/preston_bus_sold_in_3_2m_deal_1_2961983