‘Cautious consumers’ blamed for collapse of Scot Motorhomes
Motorhomes business a victim of “cautious consumers”
Scot Motorhomes has collapsed into administration, putting more than 20 staff out of work, following weak sales and intense competition.
A1 Hire sold and rented a range of motor homes under the Scot Motorhomes brand from leasehold premises in Aberuthven. near Perth.
The firm had grown quickly with turnover peaking at £11 million, but over the last 12 months, experienced trading challenges arising from intense competition and declining consumer spending on capital items.
More recently the stock finance facilities available to A1 were reduced and this placed it under intense cash flow pressure. Despite extensive efforts to reduce costs and streamline the business, it was not possible to trade through these difficulties and ultimately led to the director placing the company into the hands of administrators at KPMG.
An associated business, Swift Labour Supplies, employs the 23 members of staff who worked for A1. Swift will be placed into liquidation at which point all employees will be made redundant. The trading operations of A1 have ceased whilst the joint administrators review options for the business and assets.
It is understood that a small number of customers may have prepaid for the rental of motor homes and the joint administrators will contact the impacted individuals as quickly as possible. Customers who are presently in possession of a rental motor home should return this to A1 as normal at the end of the agreed rental period.
Blair Nimmo and Alistair McAlinden, of KPMG were appointed as joint administrators on Friday. Mr Nimmo said: “Whilst the increase in the number of holidaymakers opting for a “staycation” over recent years was a boost to A1, more recently intense competition and increasingly cautious consumers have badly impacted both the rental and sales operations of the company.
“We understand the collapse of A1 will be of great concern to its employees and customers. We will be contacting customers who have pre-paid for either the rental or purchase of a motor home from A1, and all available support will be provided to both them and of course the employees.”