London and Kent coach operator Redwing Coaches and Essex-based John James Luxury Travel have been purchased by REL Capital. Redwing will be restructured and operate as REL Redwing using a smaller fleet than the existing 55-vehicle business, with current directors staying on and retaining a share of the business.
A separate deal will see John James Luxury Travel purchased, also with the director staying on and retaining a shareholding. Both acquired companies will operate alongside REL Davian North London Coaches, which has just invested £1.5m in 13 new coaches. The North London operator was bought in September 2020, and has picked up 12 new contracts over the last 12 months.
REL owner and entrepreneur Andy Scott takes struggling firms needing investment or on the verge of going bankrupt, invests in them and holds on to them in the long term in partnership with the existing management teams. He believes that many troubled businesses can have a bright future given the patience to turn them around.
However, the 42-year-old businessman has had to turn around his personal life too, battling bankruptcy and mental illness after suffering huge losses in the 2008 financial crisis. Andy said: “When I go and see a company, I have empathy for the business owner. I’ve been there myself. I understand they are not sleeping, worrying about losing everything.”
Andy and his team partner with the existing management teams of failing businesses and aim to steer them to calmer waters before turning them back to profit, he explained. His REL Investment Management business currently owns, invests and partners with 10 businesses across the recruitment, hospitality, property, and transport sectors, taking an 80% ownership of the companies while management teams retain 20%.
Andy added: “For owners faced with closing down a business, doing a deal with us is a great option. We save your company, keep all staff on, the owners retain their salary and benefits, a smaller share of the business, we can agree an exit plan for you if you want to retire in a couple of years, and we take the boring bits off of you like accounting, credit control, payroll, etc. We also only invest if we think we can grow the business and profits quickly, so advise owners to think pound signs rather than percent.”
Andy said he is in talks with three other operators about completing deals over the coming months, with a plan to build a national network of companies operating as a group but run by individual directors day to day.
