YELLOW Buses has gone into administration. 

The bus company, which is in its 120th year, has been handed over to Milsted Langdon LLP, a statement by the accountants said. 

A loss of revenue, rising fuel prices and the general rise in inflation have all been blamed as factors for the decision. 

The news serves as an “unsettling time” for the Yellow Buses’ 300 staff, but drivers are being reassured the administrators are doing “all they can” to ensure the business operates “as normal as possible”. 

Read more: Bournemouth bus company "struggling" in post-covid world

In a joint statement, Simon Rowe and Rachel Hotham of Milsted and Langdon LLP said: “We recognise that many people rely on the Yellow Bus network for all sorts of aspects of their daily lives and that for them and the 300 staff employed by the business this is an unsettling time. 

Bournemouth Echo: David Squire, managing director at Yellow BusesDavid Squire, managing director at Yellow Buses

“We can recognise this and want to reassure everyone that we and our team are doing all we can to ensure that the business continues to operate as normal as possible under the circumstances and continues to do so into the future.” 

Yellow Buses, which trades as Bournemouth Transport Limited, has been struggling like all bus companies thanks to the “challenges” of COVID and the lifestyle habit changes which have followed – such as people working from home. 

The directors of the business have “for some time” been looking for outside investment or buyers for Yellow Buses.

Read more: Call to improve bus services to and from Bournemouth Airport

The statement added: “Negotiations with a large national operator have entered the final stages and we hope to be able to conclude within a matter of days.  

“With its long history in the local area and its integral role within the community we appreciate that there will be a great number of people concerned about this news, what we would ask is that the community shows its support by using the services.  

“Support Yellow Buses and crucially its staff by using the bus. Take a trip on one of the buses and let the drivers know they have your support. Show them just how important this service is to everyone. 

“We will of course keep the staff and customers updated over the coming days.” 

The news comes after Yellow Buses put out an apology online to passengers for service that isn't up to standard, stating that they had to "rebuild the business".