The UK arm of car rental giant Budget has been placed into administration, following the collapse of its 11 September-hit US parent company, the BBC reported on its website.
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The BBC said that corporate troubleshooters Kroll Buchler Phillips has been appointed as administrator of the UK business.
The move came just three weeks after US-based Budget Group, the world’s third largest car hire firm, filed for Chapter 11 bankruptcy from creditors, the BBC said.
However, according to the BBC, while the troubles at the UK firm threaten seven sites around London, mostly at airports, 103 Budget franchises are not in administration.
The BBC said that KBP partner Simon Freakley raised hopes that one of Budget’s franchisees would bid for the stricken company and added that the administrators intended to keep the company trading while a buyer was found.
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By GlobalData
The collapse of the Florida-based parent company was blamed on a decline in car rental since the 11 September strikes on the US, the BBC said.
