TOM Group is in administration. This includes its Scottish subsidiary companies TOM Vehicle Rental and Caledonian Truck & Van.
Ernst & Young (EY) has been appointed joint administrators.
Administrators say they are confident that they will successfully sell the business and assets of a third subsidiary, Alistair Fleming based in Kilmarnock.
The Group has ceased trading and 342 employees have been made redundant across 11 locations in Scotland and England.
EY says 86 staff will be retained at head office for up to four weeks to assist the administrators with an orderly wind down of the business and respond to any customer queries.
The TOM Group had made efforts to restructure and sell the business, but lack of interested parties, and lack of liquidity forced the Group into administration.
Colin Dempster, Joint Administrator from EY, commented: “The Group has incurred operational difficulties and associated liquidity problems in recent years that reflect low utilisation of their rental vehicles, as a result of a competitive market, and changing customer preferences.
“Despite the best efforts to save the Group, it could not continue to operate as a going concern and Administrators were appointed. It is with regret that 342 people have been made redundant. Our specialist team will work with those affected to help them claim outstanding wages and other payments due from the Redundancy Payments Office.”