UK rental business 1Car1 Car and Van Rental is reported to be on the brink of collapse, with around 700 jobs at risk.
According to press reports, a memo circulated to staff this month indicates that the Leeds-based company may not be able to pay March salaries due to a change in the lending policy of two banks used by 1Car1.
The memo also indicates that the company is discussing its options with administrators.
1Car1 has recently been hitting the headlines for turning towards short-term hire, promoting the use of rental cars over leasing, with customers unwilling to commit to long contracts.
Founded in 1988, the company has grown rapidly since 2003, and operates a fleet of close to 20,000 vehicles. 19 new branches opened in 2008 across the UK.
The company has also relaunched its 1Car1 Contracts fleet solutions provider recently. 1Car1 is a division of Contract Hire & Leasing Ltd.