Jobs at Mayflower's bus factories may be on the line

Earlier this week, Mayflower's market value fell by a third when a £20m black hole was found in its accounts.

The accounting error caused the departure of Mayflower's chief executive John Simpson, as well as other senior executives.

Three of the High Wycombe-based bus and car part maker's subsidiaries will also be run by administrators.

Losses

The failure to agree a refinancing deal with its lenders puts the livelihoods of thousands of workers at risk.

It has also emerged that Mayflower's company pension scheme is also deeply under funded, said Radio Scotland's business correspondent Hayley Millar.

This would leave workers at risk of losing their pensions before new government protection rights come into effect next year, he said.

In Scotland, 1,000 jobs are on the line at bus factories in Falkirk and Larbert, in Stirlingshire, said Mr Millar.

The three subsidiaries at risk are Mayflower's management services company, its automotive business Mayflower Vehicle Systems and its UK bus building business Transbus International.