Prohire Limited, a long-established name in the UK commercial vehicle contract hire and fleet management sector, has formally entered the initial stages of insolvency proceedings. A Notice of Intent (NOI) to appoint an administrator was filed on 27 June 2025, a move which legally protects the company from creditor action for ten business days while future options are explored.
Who Are Prohire?
Founded in 1997 and headquartered in Stoke-on-Trent, Prohire Limited provides commercial vehicle rental, contract hire, fleet maintenance, and accident management services. Their fleet includes refrigerated trucks, HGVs, LCVs, and specialist vehicles tailored to the needs of national and regional logistics firms.
The business has carved out a stronghold among foodservice and last-mile delivery operators, with a track record of supplying compliant, ready-for-road vehicles coupled with telematics, maintenance and 24/7 support.
Rising interest rates, inflation, and the spiralling cost of acquiring and maintaining commercial vehicles have hit the sector hard. Prohire has been further impacted by slow payments from distressed clients and volatile asset values in the used vehicle market.
A Notice of Intention (NOI) to appoint administrators provides a breathing space for the directors to assess whether the company can be rescued as a going concern or if asset realisation is the more likely outcome. The notice gives temporary protection against legal actions by creditors, including repossession of leased assets or enforcement of court judgements.
During this period, Prohire’s directors are understood to be working closely with advisers to explore potential sales of business divisions, restructuring options, or a Company Voluntary Arrangement (CVA).
Prohire’s situation mirrors broader issues within the UK commercial vehicle leasing and fleet management space. Several market-wide difficulties have converged in 2024/25 leading to the insolvency process being initiated:
- Delayed OEM production and prolonged delivery timelines
- Residual value uncertainty for leased vehicles
- Increased defaults from logistics clients following multiple insolvencies
- Changing tax treatment of leased assets and emissions-based incentives
- Surging repair and maintenance costs due to labour shortages and parts delays
These pressures have severely reduced operating margins, especially for firms heavily exposed to sectors like frozen food distribution and event logistics.
As of its last published accounts, Prohire employed approximately 85 staff and worked with a broad network of SME subcontractors across maintenance, recovery, and vehicle supply. The insolvency process may affect the continuity of these relationships unless the business is sold or refinanced.
Creditors include vehicle manufacturers, leasing finance houses, maintenance depots, and software providers. Several of these stakeholders may be impacted by unpaid invoices if the company enters administration.
Options Available to Prohire
OptionDescriptionLikely OutcomeGoing Concern SaleSelling the company as a trading entityPreserves jobs and service continuityPre-Pack AdministrationBusiness sold immediately upon entering administrationProtects value but may impact creditorsCompany Voluntary Arrangement (CVA)Agreement to repay part of the debt over timeRequires creditor consentLiquidationClosure and sale of assetsLast resort; significant job losses likely
Given the strength of Prohire’s brand and client base, a going concern sale or pre-packaged administration is considered more probable than outright liquidation.
Current customers relying on Prohire for fleet provision, particularly refrigerated or specialist vehicles, are urged to maintain communication with their account managers. Fleet uptime and maintenance support may be subject to disruption depending on how the situation evolves.
Those with Prohire vehicles under contract hire should check lease terms for early termination or administration clauses. Businesses relying on short-term rental availability may also face temporary shortages or delivery delays.
The news has sent ripples across the logistics and vehicle leasing landscape. Trade associations, including the BVRLA and FTA, have reiterated calls for greater government support and clarity over vehicle procurement pipelines, taxation policy, and access to finance for fleet operators.
Administrators will likely be formally appointed in early July 2025, at which point a full statement of affairs and restructuring plan will be disclosed. Stakeholders including suppliers, staff and customers should remain alert to official updates via Companies House or the appointed insolvency practitioner.
Fleet clients are advised to consider contingency plans for continuity of vehicle availability, particularly as peak summer logistics demand increases pressure on rental supply.
