EY, the global advisory and accountancy firm, has instructed CAPA to conduct a rates and accounts payable audit across 28 sites at T.O.M. Group Ltd, the vehicle rental company in administration.
Colin Dempster and Fiona Taylor of EY’s restructuring team were appointed administrators of T.O.M. Group along with its Scottish subsidiaries, T.O.M. Vehicle Rental Ltd and Caledonian Truck & Van Ltd, in March.
The group had suffered operational difficulties and liquidity problems in recent years. This was reflected in low usage of the company’s rental vehicles, as a result of a competitive market, and changing customer preferences. These circumstances led to very challenging trading conditions and losses in recent months.
When efforts to restructure the business had proved too difficult, the owners marketed it for sale but no suitable parties emerged as a buyer. Due to a lack of liquidity and increasing pressure from creditors, the directors then called in the administrators.
EY has now instructed CAPA to conduct the audits on the 28 T.O.M. Group sites throughout England and Scotland.
The instruction means CAPA will undertake a forensic analysis of rates paid out on properties across the locations. The team will use bespoke software to inspect the data and uncover errors or any anomalies, that enable them to recover cash for the insolvent company’s creditors.
The team will also inspect invoices owed to the different outlets, to discover any overspend or errors which can also be recovered for creditors facing any losses.
Upon their appointment, the administrators at EY were confident that they will sell the business and assets of a third T.O.M. Group subsidiary, Alistair Fleming, based in Kilmarnock, which would save the jobs of 21 employees.