First Group Disposals

[volvodart]

RE: First Group Disposals
As they are pulling out of the North Devon acquisition:-

http://otp.investis.com/clients/uk/stage...sid=256311

[gilesbus1]

RE: First Group Disposals
In response to the idea that Wigan might be purchased by Rotala I will poor cold water on it now, Preston Bus was purchased by selling off all Preston Buses fleet to a Higher Purchase company and Rotala now lease the fleet back, unfortunayly the fleet that would go at Wigan is of no value or is PTE owned anyway, so insufficinet money would be generated to buy it out. Rotala do not have large cash reserves to make such a transaction unless the fleet was as in Preston's fleet relatively modern and could be leased back. So really the only optrion left for Wigan is a purchase by either Stagecoach or RATP, if they fail then basically the truck routes would move to other depots the local network would be abandoned and the relatively new depot at Bryn would close. The loca network would then probably to a viable level be registered by SLT or Wigan Buses or Wigan Coachways with small fleets of Optare Solo's or Dart MPD's.

Chester and Birkenhead are in a better possition as it is a much more substantial area with security being built up by partnerships with Arriva and therefore it might be possible to return the operations to a modest profit, therefore that might attract several external buyers.

The other option might be to sell all the Stagecoach as one package and for them to make what it might see as suitable adjustments.

Outside the area the article has got to the local press in Northampton, they spoke to Stagecoach who said they would be interested if the OFT wasn't interested but because the OFT is they will not be persuing with any offer but will watch the sale with interest to see what6 possition arrises, presumably if there is no offer they might register over the erntire network and bring the company to closure perhaps and then make a tojen bid for the depot building only.

This is my one concern with the OFT's possition being that any operator could register over the entire network making it cheaper and more able to take-over the operations without buying anything, that would lead to redundancies and the drop and downsizing of all these networks to merely commerrcially viable, therefore how can the OFT say it is in there interests to stop other buyers buying outright, or does it have a specific issue with FirstGroup making any money out of these sales considering that the previous Cheif Executiove Moir Lockhead was a prominent Labour Party backer.

[mbonwick]

RE: First Group Disposals
I thought Rotala secured a loan against the Preston Bus fleet - which isn't the same as going Hire-Purchase.
For info, there is an advert in Route-One magazine inviting offers to Rotala for 2x Scania N94UB/ELC Esteems, which surely suggests they at least own them?

[Metroline1511]

RE: First Group Disposals
It is quite harsh of the OFT to refer the North Devon proposal to the CC. For many years the network was all run by First and neither the OFT nor the CC minded the monopoly. They seem to think worse of Stagecoach than anyone else having a monopoly anywhere, as they demonstared in Preston.

First could get round it by de-registering routes that overlap with Stagecoach and then seeling the reduced remaining operation (including route X9 Exeter-Bude) to Stagecoach, who could then increase services where First have dropped the routes.

There are other operators in the Barnstaple area, such as Holsworthy Bus, Jacketts Coaches and Quantock Motor Services. All the more reason why the OFT seem to be over-reacting.

I admit that I do like the idea of First retaining the most modern stock, such as the leather-seated Enviro 400s on route X9, and redeploying these elsewhere in the area.

[Nicholas]

RE: First Group Disposals
First have announced they are to close the Barnstaple depot.

In other news, Uno (Universitybus) will be commencing operation in the Northampton area, initially running university services in the town. That could potentially make a sale to Stagecoach more possible.

[gilesbus1]

RE: First Group Disposals
At Preston the loan that Rotala took, was based on the value of the fleet, the fleet was sold off to get the deposit and is leased back from a finance house.

I cannot see most of the First operations now being attractive no matter what First says to outside operators having seen the failure at North Devon and at Lothian to sell operations.

The issuew is unfortunatly all these opeartors are loss makers and are covered and hemmed in by other operators who also ruin accross routes that are already operated, therefore there operational value is low as it would be very hard to turn a loss leader where all the fleet needs replacing into a sucess, given that other operators run across routes and that it cannot sell to the other operator as it sparks an MMC investigation.

The only losers will be staff and passengers as the only way out looks to be for First to close all the depots in those locations and leave t6own by therefore allowing the others to register what is commercially viable over the top of what was the FirstGroup routes.

The other thing the MMC allows by its action is a Darlington and Inverness type attack on the operations which it can do little to stop, no wonder First is garded despite the leak about what it wants to sell as any such attack would no doub't lead to the immediate closure of a depot that was considered unviable and would creatate exactly the situation that the MMC do not want to see.


In result the MMC will cost upto 3,000 jobs as a result of its silliness over these issues, eitrher through depots having to close or through staff at other firms no longer having bus links to get to work, no wonder the recession wew've been in single 2008 shows no sign of ending.

The other danger is that if another operator engaged on a Dralington or Inverness style attack on operatiosn ovewr one of these depots then the operations would possibly close with immediate effect and would create exatly what the MMC dsoesn't want to see but almost definately put it in a position where it cannot or has limitewd powers to punnish the offenders.

Both senario;s would lead to the Government having indirectly to pay out for some loss making services to be tendered as well so hardly the best outcome, as all these opeartiosn are loss leaders the MMC should yhave no powers to investigate sales to direct rivals as it is the cheapest and best way for the operations to continue without major cuts in services or major investment in tenders or job losses all in which the sttae and UK tax payer pick up the bill for.

[W179 SCU]

RE: First Group Disposals
Read this.

[mbonwick]

RE: First Group Disposals
Link returns a 404.

Guessing it refers to the fact that First are to cease operations in Barnstaple with Stagecoach registering some of the routes? If so, old news.

[PO62 MKA]

RE: First Group Disposals
Closure of North Devon operations: further information
Monday 06 August 2012

Following the announcement that we made recently regarding our plans to close our North Devon business we can now confirm that we will stop running buses in North Devon from the middle of September.

Specifically the last buses to operate on Services 1, 2, 3, 5/5C, 8, 30/30C, 31, 32, X7 and X9 will run on Saturday 22 September.

Before the decision to close the business was made we explored every other option, including the sale of the business to someone else. Unfortunately none of the alternatives we looked at were viable.
While we will continue to provide services until 22 September, we would like to take this opportunity now to thank all our customers for the support and loyalty that has been shown to us, and our drivers, over the years.

Buses will continue to run in North Devon after we are gone, and many of you will find that other local bus operators are able to step in to take you where you need and want to go. Anybody who needs help and advice planning future journeys by bus should call Traveline on 0871 200 22 33 or log on to: http://www.travelinesw.net
Customers who have season tickets with First, who would like information about about how to apply for refunds for any unused portions of tickets, are advised to contact customer services by calling 0845 600 1420 or emailing firstdevonandcornwall@firstgroup.com


Thanks again.
The team at First

Link -> http://www.firstgroup.com/ukbus/devon_co...681&conf=0

[gilesbus1]

RE: First Group Disposals
According to a Sommerset County Council source the depot that is likely to be disposed of there is Wells depot according to an article in a local newspaper i've just found through a Google News Search, wether either Bath or Weston is also involved remains to be seen.