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Reading: HCT Group in talks with Stagecoach over London routes
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routeone > Business deals > HCT Group in talks with Stagecoach over London routes
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HCT Group in talks with Stagecoach over London routes

routeone Team
routeone Team
Published: August 24, 2022
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HCT Group in discussion with Stagecoach over London services
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HCT Group is at an advanced stage of talks over the sale of its London bus business to Stagecoach as the scale of the social enterprise’s difficulties grew significantly. That work currently occupies around 160 vehicles from two depots.

In a notice to staff, Operations and Engineering Director Mark Owen says that sale of the Transport for London contracted work to another operator is “the best way to protect the jobs of our front-line staff.” At the time of Mr Owen’s message, the talks with Stagecoach had not been concluded, but further details are expected to be confirmed shortly.

The memo notes that HCT Group suffered difficult trading conditions before the COVID-19 pandemic, which have since been followed by the impact of that period and increased fuel and labour costs.

“We believe that our red bus team will continue to prosper under Stagecoach’s potential ownership and we would like to thank all our team for their commitment and hard work,” Mr Owen continues, adding that staff will be advised further as the situation develops. HCT began running buses in London in 2001.

Identical reasons to those cited by Mr Owen were given when the Group took the short-notice decision to close its Yorkshire operations earlier in August.

Stagecoach has confirmed that it is in talks with HCT, although a spokesperson notes that “there is no certainty at this stage that these discussions will lead to a confirmed sale.” Should the purchase progress it will represent further growth in London for Stagecoach, which took over the former Tower Transit Lea Interchange operation in late June.

Meanwhile, as discussions with Stagecoach came to light, speculation about the future of HCT subsidiary Bristol Community Transport (BCT) arose after that organisation said it would no longer deliver group transport services, include dial-a-ride, after 26 August.

HCT Group Chief Executive Lynn McClelland says that BCT has been unsuccessful in its bid to find an alternative operator for that work. BCT additionally provides conventional bus services in the Bristol area, including a high-profile Metrobus route operated on behalf of First West of England.

HCT Group has also announced that its minibus service 812 in London will cease operation after 26 August. Islington Council provides funding for that route and HCT says the local authority “will review how it can best help and support users now and in the future.”

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