Huge car hire company collapses into | Tech News

A car hire company that entered administration final 12 months nonetheless has to pay tens of millions of kilos in money owed, with dozens of workers made redundant, in accordance with experiences. Prohire, a supplier of contract hire, fleet management and rental providers, entered administration in the summertime of 2025. 

However, a report from the directors discovered that the company nonetheless owed tens of millions of kilos to collectors. The consultants stated that “non-preferential unsecured creditors are estimated to be in the region of £28m for Prohire and £19.6m for Prohire Group”.

But, the directors revealed that the company’s unsecured collectors weren’t prone to secure their losses in a main blow. The directors stated they discovered that  “on current estimates we anticipate that there will be insufficient funds to enable a dividend to non-preferential creditors of either Prohire or Prohire Group.”

Prohire was a main contract hire firm primarily based throughout a number of areas round Stoke-on-Trent within the West Midlands. They additionally had workers working for them in Tunbridge Wells in Kent within the South East of the UK.

The hire company is known to have gone into administration early in the summertime of 2025 for a quantity of causes. Those cited by the directors embody a contraction in margins on contract hire gross sales. 

They defined this probably positioned “pressure on trading performance and profitability” which led to “significant losses”. The administrator even defined that the company incurred losses of round £1.5m in FY25 on the disposal of autos alone.

Dozens of workers misplaced their jobs when Prohire went into administration final summer time. When the business ceased trading, 54 workers have been made redundant, with 29 people retained to help the directors. 

However, all remaining workers have been made redundant in August in a main blow to the over 80 workers members. According to the report, company shareholders rejected requests for additional funding when it grew to become clear tens of millions have been needed to make sure the survival of the business. 

The directors stated: “This meant the group had insufficient funds remaining to continue trading and no reasonable prospect of additional funds being secured on necessary timescales.

“The companies’ directors therefore concluded during week commencing Monday 23 June that the companies would need to enter an insolvency process.”