THE sale of its well-known premises plunged a long-standing Pembrokeshire business even deeper into financial trouble from which it could not recover, a report has said.

Silcox Motor Coach Company operated a fleet of 65 coaches and buses and provided the vast majority of the Pembrokeshire County Council school bus service.

The company collapsed in June, although 50 jobs were later saved by Edwards Coaches, the operator that took over the school bus contract.

A report published by insolvency practitioners Kelly Burton and Joanne Wright from Wilson Field examined the collapse of the 134 year-old company.

It details how New Inn Travel Group (NITG) became a shareholder in the business in 2015.

In July of that year Silcox shareholders agreed the transfer of the coach company’s long-established Pembroke Dock base to NITG.

Silcox moved to a leased building and part of the land was flattened and sold to Aldi, where the construction of the long-planned supermarket continues.

The report states: “The directors believe that the relocation to alternative premises has had a detrimental effect on the business, as it lost its prominent location on a main road which resulted in significant reduction in customer footfall as clients found it difficult to find the company’s new office.”

Leasing a new building led to further cashflow issues which were further exacerbated by the withdrawal of a £100,000 overdraft facility.

This, coupled with a breakdown in relations between NITG and Silcox directors, led to the decision being taken to seek a buyer for the business.

Negotiations with Excalibur Coaches Ltd reached advanced stages but could not be completed.

Talks also began with Edwards Coaches but a major issue arose that threatened the company’s future, as Silcox's membership of the Bonded Coach Holidays (BCH) scheme came into doubt.

The scheme is designed to safeguard holiday makers’ money in the event one of its members ceases trading.

The company's bond expired in May 2016 and, due to the financial difficulties, it was unable to renew.

A period of grace regarding the BCH membership was granted while sale negotiations continued with Edwards but the company withdrew from the sale at the end of May.

Edwards withdrew from the purchase because of the size of the company's liabilities which would be inherited.

It became apparent that Pembrokeshire County Council had already approached Edwards about the possibility of taking over the schools service in the event that Silcox collapsed.

“This led to Edwards withdrawing any interest in acquiring the business, recognising that they were likely to pick up the PCC contracts by default, were no sale to proceed,” said the report.

The documents show unsecured creditors are owed about £1.26m but there is "no prospect of a dividend" according to administrators.

There were just under 250 customers who had booked and paid for trips with Silcox before it went under.

The reports says many will be eligible for money back via the BCH scheme or through credit card companies.