Car rental firm in administration

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One of Britain's top car and van hire firms has gone into administration, putting 800 jobs at risk.

About 200 staff at Leeds-based 1car1 have already been made redundant, said administrators Pricewaterhouse Coopers.

The company employs 800 people at 87 sites in England, Scotland and Wales, with 108 at its head office in Leeds.

Joint administrator Steve Ellis said: "It has sadly become reliant on levels of funding which are unsustainable in the current credit climate."

The administrators said they hoped to find a buyer for the business and its 15,000-vehicle fleet, which was likely to be wound down over the next five weeks.

Mr Ellis said: "1car1 has grown very rapidly over the last five years but since the onset of the downturn the company has experienced a tightening of its available credit.

"This has meant that the replenishment of the vehicle fleet has been difficult to fulfil.

"Clearly it is disappointing to have to make a big number of redundancies. My team and I will be doing all we can to help these employees at this difficult time."

'I'm in shock'

Worker Gary Shields said: "We were told we were going into administration and they might not be able to pay us."

He went on: "We are all just waiting to see what happens, but obviously it doesn't look good. Apparently two banks had a change in lending policy and that has affected the business.

"I'm in shock as are my colleagues. The company was a profitable business and doing well. It is a real shame.

"With two million unemployed and about 10 people going for every job it doesn't look good."

Jack Elkin, 20, who joined the firm eight months ago, said: "It is a real shame, business was good and was up on last year. It is a good business to work for. It was a profitable business."