Covid-19: Coach firms 'facing collapse' without help

Rikki Wilson says personal guarantees on his firm mean he could lose his home

Coach companies have again warned they face collapse if they do not receive urgent help from the government following a slump in business during the coronavirus outbreak.

Many firms are paying thousands of pounds in finance deals for vehicles that are not bringing money in.

One worried boss said his fleet could be repossessed in the coming weeks.

The Department for Transport (DfT) said it would "continue to work closely with the sector".

Coach firms have warned for months they have not received the same financial support as bus companies to cover the loss of earnings caused by the cancellation of day trips and reduced capacities to allow for social distancing.

'I'll lose my home'

Rikki Wilson, from Newcastle-based Group 10 Executive Coaches, said: "I've got personal guarantees on all of my coaches, so even if just one becomes a default process that'll collapse the company and then I'll be looking at the guarantees being activated.

"That means I'll lose my home, I'll lose my business and ultimately I'll end up in bankruptcy. All we've had is the furlough scheme, which is support for employees rather than the business, and a £5,000 grant from Newcastle City Council.

"My coaches cost £200,000 to £250,000 per asset and the repayments on something like that vary between £4,000 and £5,000 per month."

North East Coach Travel's Jenna Rush believes longer payment holidays are needed

Jenna Rush, managing director of North East Coach Travel in Newcastle, called on ministers to encourage lenders to give longer, and backdated, payment holidays.

"If we don't get moving or get government support we are not going to be here," she said.

"We have been one of the lucky ones and managed to have accessed a CBILS loan but we have roughly £20,000 a month outgoings on finance and at the moment we have around £2,000 a month coming in, so with an £18,000 shortfall every month we are living off a loan and that loan is going to run out very shortly."

Graham Greaves and daughter Jade Cooper-Greaves said more help was needed

Henry Cooper Coaches in Annitsford, a family run business founded in 1926, was one of the few coach companies that managed to get help during the pandemic.

Partner Jade Cooper-Greaves said: "The government excluded coach companies from the rates relief grants.

"They said that we're not classified as tourism, leisure, hospitality or essential travel. I have never written a job down in my diary that wouldn't be classed as tourism, leisure, hospitality or essential travel.

"We were lucky, we were in the 15% that got a grant, we had to fight tooth and nail to get it, but there's the other 85% that didn't get anything."

'Upcoming challenges'

Matt Rodda MP, Labour's shadow minister for buses and local transport, called for industry-specific support and "clearer guidance" to operators around social distancing.

"Even though the furlough scheme has helped a bit in the short term, they are now facing an even harder position over the winter," he told BBC Radio Newcastle.

A DfT spokesperson said: "We know how badly the industry has been hit by Covid-19 and we continue to work closely with the sector to provide it with support as well as anticipating upcoming challenges.

"This includes the support the Chancellor has set out for UK businesses as part of the Winter Economy Plan."