A Scots bus company has gone into liquidation due to the impact of remote learning during the pandemic.

Keenan of Ayr which provided school transport across Ayrshire has ceased trading in a move that will affect hundreds ofpupils.

The firms called in the liquidators on February 16 after it suffered cash flow problems, with 18 staff made redundant.

The move bringing an end to more than 60 years in operation was first revealed to staff in a meeting last week.

The firm operated 18 buses and coaches from its base in Coalhall near Ayr and also provided private hire contracts.

Local education and transport chiefs have been scrambling to to re-assign the 14 contracts held by the firm across eight different schools with 580 pupils being ferried between their homes and schools by the bus firm.

The Herald:

Keenans of Ayr... when it all began. Source: Facebook (Keenan of Ayr)

Provisional liquidators Begbies Traynor said it had ensured all the bus company's school routes were covered after talks had been held with Strathclyde Partnership for Transport (SPT) and South Ayrshire Council.

According to the unaudited financial statement for the company for the year to October 2020, signed off in June last year, the implications arising from Covid were "uncertain" but the firm were of the opinion that it remains "a going concern".

Thomas McKay, partner at Begbies Traynor, said: "Unfortunately, after the last two years of difficult trading, the business has suffered from a cash flow perspective and latterly proved unviable, due to material decreases in turnover and remote learning for children, resulting in a reduction in the number of buses on the roads and income for the business.

"Alternative operators have been contacted to cover the school bus services in order to minimise disruption to passengers. We are now in the process of dealing with the company's affairs and realising any assets to provide the best return for creditors."

A South Ayrshire Council spokesman said the affected schools had been notified as well as parents and carers.

The spokesman added: "The new contracts put in place were operational from Wednesday 16 February 2022, following the school holiday, with no break in service."

The business listed as John Keenan & Sons (Darwin Garage) Ltd was operating from its base in the village of Coalhall and had held contracts with schools for 45 years.

The company, a family-run business, was started by Jack and Anne Keenan before son Jamie Keenan and his wife Sandra took over the firm.

The well-known name has been associated with school transport services as well as private hire contracts since 1977.

An SPT spokesman said: “Once we became aware that Keenan of Ayr was no longer operating, SPT — on behalf of South Ayrshire Council — responded quickly to ensure continuity of service for the school services affected, sourcing alternative contractors to cover these services on a temporary basis.”