A SCOTTISH motorhomes company has ceased trading after succumbing to intense market competition and weak consumer sentiment, leading to the loss of more than 20 jobs.

A1, which sold and rented vehicles under the Scot Motorhomes brand from leasehold premises in Aberuthven, near Perth, collapsed into administration after cash flow was hit by a reduction in stock finance facilities available to the firm.

Twenty-three people will be made redundant when Swift Labour Supplies, an associated company which employed all of A1’s staff, is placed into liquidation shortly, administrators at KMPG said.

Joint administrators Blair Nimmo and Alistair McAlinden have launched a review of the options and assets for the A1 business, and urged potential buyers to come forward.

Mr Nimmo said: “Whilst the increase in the number of holidaymakers opting for a staycation over recent years was a boost to A1, more recently intense competition and increasingly cautious consumers have badly impacted both the rental and sales operations of the company.

“We understand the collapse of A1 will be of great concern to its employees and customers. We will be contacting customers who have pre-paid for either the rental or purchase of a Motor Home from A1, and all available support will be provided to both them and of course the employees.

“A1 has an excellent reputation and is well known for its market leading Scot Motorhomes brand. We would encourage any parties with an interest in acquiring the business and / or assets to contact the joint administrators immediately.”