Two bus firms which provide school transport have gone into voluntary liquidation.
Bedwas-based Independent Community Transport, which trade as CATS and TopKats Travel, went into voluntary liquidation at 11.59pm on Tuesday.
Caerphilly County Borough Council has made arrangements for the firms’ council contracts, which included providing specialist buses for Ystrad Mynach’s Trinity Fields School, to be covered by other approved operators.
The schools were informed of the change on Tuesday.
A spokesman for Caerphilly county borough council said: “We are taking urgent steps to ensure alternative transport arrangements are put in place for the contracts affected.
“We understand, following correspondence from the chief executive of CATS and TopKats Travel received last Thursday, the idea was to close these two companies via voluntary liquidation and open a brand new bus company under a different name with different directors.
“They thought they could use the same vehicles and continue with the contracts of CATS and TopKats Travel, this of course would be illegal.
“Strict EU procurement laws mean we cannot automatically give these contracts to the new company. All the approved bus contractors that provide services for the council must be part of a framework agreement in line with procurement legislation
“ Any firms that are not within this agreement are not eligible to apply for the contracts. As a brand new company they would not be within the framework agreement.”
In a statement a spokesman for CATS said: “CATS is amazed Caerphilly Council has issued an inaccurate statement with reference to CATS before allowing their management the opportunity of explaining the Transfer of Undertakings regulations to our colleagues.
“Once our staff have been consulted and given full details of the transfer a statement will be released to explain, however it’s business as usual her at CATS.”