YELLOW Buses had debts that outstripped its assets by around £1.33million when it went into administration, it has been revealed. 

The now defunct company also owed more than £500,000 in wages and deductions, according to a recently released statement of affairs submitted by Bournemouth Transport Ltd’s financial director, Noel Smith. 

The statement says the business had liabilities totalling £3.2m and had assets of £1.88m when it went into administration.

That leaves an estimated shortfall of £1.33m for non-preferential creditors, with suppliers being owed £1.21million according to the company’s purchase ledger.

Bournemouth Echo: Yellow Buses on its final day tradingYellow Buses on its final day trading (Image: NQ)

Read more: All routes served by Yellow Buses to stop from tonight

The Department for Transport is owed £569,662 while £535,511 is owed in wages and deductions. 

In the report, it also reveals bus builder and manufacturer Alexander Dennis are owed £23,429 for parts and £1,417 for services. 

Filtration Control Solutions, the UK’s largest lubricant supplier for public transport vehicles, are owed £24,774. 

Ilchester Estates, owned by Charlotte Townshend, one of the richest people in the south west, is also owed £111,000. 

Bournemouth Echo: Yellow BusesYellow Buses (Image: NQ)

Read more: Yellow Buses has gone into administration

A lot of the money is also owed to insurers, with one (Arthur J Gallagher) being owed £403,746. 

Southampton-based MC Truck & Bus, supplier of Volvo buses used by Yellow Buses, is also owed £87,187 whilst Steve Noel Vehicle Engineers, in Bournemouth, is owed £18,531. 

Yellow Buses was put into administrator Milsted Langdon’s hands, with a loss of revenue, rising fuel prices and the general rise in inflation all being blamed as factors for the 120-year-old company's downfall. 

Administrators were brought in to find a buyer for the business, but one couldn’t be found for the entire company – the reason given was buyers found the company was “not commercially viable.” 

Read more: 100 Yellow Buses drivers gain employment at Morebus

Mosty of the 300 people employed at Yellow Buses were made redundant, but 50 jobs were saved after National Express bought the coach and engineering operations of the business. 

Around 100 more drivers joined rival operator Morebus, with welcome bonuses of up to £3,000 being given out to new recruits. 

Attempts have been made to ask administrators Milsted and Langdon but we have not had a response.