The firm operates one of the UK's largest privately owned light commercial vehicle (LCV) fleet hire firms from a network of sites across the country. Established in 2003, the company runs a fleet of around 13,000 vehicles and employs 255 people. Leaseway locations are Glasgow, Newcastle, Leeds, Manchester, Birmingham and London.

Bruce Cartwright, joint administrator and head of business recovery services at PwC in Scotland, commented: 'During the last 12 months Leaseway has encountered trading difficulties that has made it difficult for the company to service its existing financial obligations.

'In response, the company's directors have considered various options to deliver a restructuring solution that would provide a long term viable business. Unfortunately the directors have concluded that this will not be feasible and taken steps to place the company in administration to protect the business and assets.'

Mr Cartwright said that the immediate priority was to ensure that commitments to contracted customers are met.

He added that PwC is also looking for a buyer for part or all of the business. He commented: 'Leaseway has attracted a large number of high-quality customers that we believe may be attractive to potential purchasers. We would encourage any parties interested in acquiring this business to get in touch with us.'

The news follows the recent announcement that GE Capital is to close its TLS Vehicle Rental operations.