A COACH company has gone out of business, leaving behind unpaid debts of more than £500,000.

Liquidators have been called in to deal with the affairs of Hardy Miles Coaches and its associate company, Hardy Miles Travel, based in Aviation Way, Eastwood.

Creditors have been warned there will be no money left to compensate anyone who is still owed money.

The company, which hired coaches and minibuses to schools and community clubs, is believed to have employed about 20 people.

However, outstanding wages will be paid by the Government under a protection scheme set up under the Employment Rights Act.

Deborah Cockerton, a partner at liquidator KSA Business Recovery, said: “Unfortunately, there will be insufficient assets to satisfy the creditors. They are not going to get anything back.

“The employees will be protected, which is the one good thing, I suppose, but there is nothing left for anybody else.”

Leigh loan firm Adams and Sons is among the creditors and according to an official statement of affairs, is owed more than £300,000.

Hardy Miles Coaches and Hardy Miles Travel also has an unpaid £60,000 tax bill and a string of smaller debts to family businesses.

Michael Chapman, a former company director, said it had borrowed heavily in recent months.

He added: “I think that caused a lot of the problems. The company did a lot of school contract work and similar things and took on a lot of vehicles.”

Insolvency documents confirm the company has been officially wound up. Its telephone line has been taken over by a rival firm, SBC Leisure.

Ms Cockerton added: “Everything which was possible has been done. The director even came to me for advice, but I’m afraid nothing more can be done now.”

Director Richard Jordan was unavailable for comment.