Yourbus collapse followed money and legal disputes

The company had served routes in Derbyshire and Nottinghamshire since 2009

Bus firm Yourbus collapsed after rows with National Express and Derbyshire County Council, it has been revealed.

Administrators said the Heanor-based firm claimed the council owed it almost £1.04m.

Yourbus also ran some National Express services, but these were axed at short notice over alleged contract breaches.

Administrators also revealed the company had debts of nearly £5.7m but former employees were "expected to be paid in full".

Yourbus announced it had ceased trading in October, disrupting some school services in Nottinghamshire and Derbyshire, but gave no further details at the time.

The firm's Heanor depot was left filled with empty vehicles the day it collapsed

However, a report by administrators Leonard Curtis showed a dispute with Derbyshire County Council over payments to cover free bus travel schemes.

The report said the council started withholding cash as it felt it had overpaid in previous years.

Yourbus initiated legal proceedings and the firm claimed the council withheld money for services from this point onwards, with the disputed total reaching £1.04m by the time of the collapse.

A legal case over this is ongoing.

The administrator's report also showed a contract with National Express had become "problematic" due to a number of breakdowns.

Disputed allegations

A disagreement over purchasing replacement coaches saw National Express give Yourbus five years notice it was terminating the contract, but this was cut to six days after the travel giant found "breaches of contract" during an audit.

Yourbus had run up debts pursuing legal action against National Express when it collapsed.

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The report showed total debts at the company were nearly £5.7m before assets were taken into account. Administrators said the final outstanding total had not been finalised but while former employees should be paid in full, "it is expected there will be a shortfall" to some creditors.

A spokesperson for Derbyshire County Council said: "We entirely dispute the allegation that we owed Yourbus any money or that the council was in anyway responsible for the demise of the company.

"We were very sorry to hear that the company ceased trading, and subsequently spent considerable efforts to replace all the services that they ran on our behalf."

National Express declined to comment.