A bus company run by two Rangers directors said it has safeguarded jobs at a bus firm which is understood to have ceased trading.

McGill's Buses said it has taken over 13 contracts previously run by Henderson Travel, which employs around 150 people.

It is in talks with the 120 or so Henderson Travel bus drivers and is offering them employment.

Strathclyde Passenger Transport (SPT) said Henderson Travel had 20 contracts with them and had breached the terms of their contract by not providing services yesterday.

SPT used emergency powers to offer the contract to another operator.

Ralph Roberts, managing director of McGill's, said: "These contracts will be under emergency powers and will usually be for one to three months. Then they will go back out to re-tender."

They will run 41 routes over 13 contracts, he said.

McGill's is run by Rangers directors James and Sandy Easdale.

Sandy Easdale said his team had been able to "move very fast" to save jobs. He added: "This is part of McGill's continued growth strategy."

Henderson Travel, based in Hamilton, South Lanarkshire, runs services across the west of Scotland but it is understood the company has ceased trading with administrators to be appointed.

The company runs SPT's school contracts in South Lanarkshire and other services in areas including Hamilton, Glasgow and East Kilbride.

SPT said they had not been formally contacted by Henderson Travel.

An SPT spokeswoman said: "They are in breach of contract with us. Under emergency powers we have offered the contract out to another operator.

"We are reviewing it on a day to day basis."