Disqualified Target Travel goes into liquidation

News

Target Travel operated coach and bus services in DevonThe entity responsible for Target Travel, a company that faced the revocation of its O-Licence three years ago, has now entered into liquidation, carrying liabilities amounting to approximately £500,000.

Dealtop (Plymouth) Ltd, trading under the business name Target Travel, incurred sanctions from the Traffic Commissioner (TC) in February 2020. These penalties extended to the Managing Director, Robert Risk, as well.

Subsequent to the O-Licence’s revocation, both the company and its MD were subjected to a two-year prohibition from possessing or procuring an O-Licence.

Target Travel operated coach and bus services in Devon

On 9 August, documents submitted to Companies House revealed that Mr. Robert Risk held a £250,000 stake in the company. However, the company’s assets were valued at a mere £29,300. Notable among the major creditors were Her Majesty’s Revenue and Customs (HMRC), owed in excess of £120,000, NatWest Bank with outstanding dues exceeding £31,000, and Miller Commercial owed over £25,000.

Target Travel, renowned for its provision of coach and bus services in Devon, and its provision of the team coach for Plymouth Argyle FC, encountered a series of challenges leading to the company’s eventual liquidation. In 2018, the company lost its 40-vehicle O-Licence due to unaddressed issues with untaxed vehicles.

Following the subsequent acquisition of a 23-vehicle licence, further complications arose, culminating in an additional penalty in January 2020. Issues included non-compliance with PSVAR regulations by the vehicles employed in local bus services.

TC Kevin Rooney, in his assessment, noted that a crash involving a Target Travel bus in July 2019 had exposed significant defects in the vehicle, although these defects were not the cause of the incident. He also highlighted that in October 2019, Devon County Council reported an instance where one of the company’s vehicles on a school run failed to display the required O-Licence disc.

Significantly, funds allocated to demonstrate financial standing for the successful application to expand the O-Licence from 17 to 23 vehicles were diverted to purchase eight vehicles, including a substantial deposit on a football team coach. This conduct led TC Rooney to conclude that the company’s compliance could not be relied upon.

Read more: Traffic Commissioner warns of un-regulated advice

It’s important to clarify that Dealtop (Plymouth) Ltd, the subject of this discussion, should not be mistaken for Dealtop Ltd, which continues its operations without disruption.

Insolvency & Restructuring Expert at Business Insolvency Helpline | + posts

With over three decades of experience in the business and turnaround sector, Steve Jones is one of the founders of Business Insolvency Helpline. With specialist knowledge of Insolvency, Liquidations, Administration, Pre-packs, CVA, MVL, Restructuring Advice and Company investment.