QUICK expansion stretched GHA Coaches’ resources beyond the limit, a bus association chief has said.

The North Wales Coach Operators Association (NWCOA) is a group of coach and bus operators that has been meeting for nearly 30 years sharing common connections and cooperation amongst its members.

Last week Nick Jones, the Traffic Commisioner for Wales, disqualified GHA Coaches Ltd directors Arwyn and Gareth Lloyd Davies from obtaining or holding a public service vehicle operator’s licence indefinitely.

The company’s two licences, authorising the use of 146 vehicles in Wales (with bases in Ruthin, Corwen, Ruabon and Wrexham) and 80 vehicles in the North West of England (with bases in Chester, Middlewich, Winsford and Macclesfield), were also revoked by the Traffic Commissioner.

Mr Jones also banned Gareth Lloyd Davies from acting as a transport manager for an indefinite period.

NWCOA president Christopher Owens said: “GHA Coaches was an association member in the past and I’ve personally known the Lloyd Davies family for a number of years.

“Their fast expansion across the region meant both their operational resources and cash resources where stretched to breaking point.

“As association president, I want to point out that we have a number of other operators in the region that can service the needs of the community.

“Our members take pride in their standard of operation and I urge the local authorities to go back to their core values of customer service and safety when awarding contracts in the future.”

Last month, the Leader reported GHA owed creditors more than £5m when the firm went out of business.

The company’s accounts showed the firm was £978,461 in arrears to HMRC and also owed £26,248 to Chester West Council and £27,546 to Wrexham Council.

In late March this year, administrators Grant Thornton reviewed GHA’s short term funding needs after it became clear they had a shortfall due to trading losses and vehicle finance commitments.

GHA sought a formal deferral over its debts to HMRC and approached councils to try to secure £1.5m bail out but were unsuccessful.

HMRC would not agree to a repayment plan and presented a winding up petition on June 20. HSBC subsequently froze the firm’s bank account on July 7.

The Davies brothers had hoped the councils would provide enough funding to pay off their HMRC 

liabilities and fund the operation of the business.

But on July 11, they learned their funding bid was unsuccessful and trading operations ceased two days later with almost 400 employees made redundant.

The company’s head office was on the Vauxhall Industrial Estate in Ruabon. It was one of the largest independently owned bus and coach firms in the UK.