Chevron Autohire has appointed SFP, the nationwide insolvency practitioners, after encountering financial difficulties.
The business has debts of more than £60,000 with a sum owed to Her Majesty’s Revenue and Customs (HMRC).
Chevron Autohire, based in Sunderland, is a car and van hire company that employs five people and has an annual turnover of approximately £300,000.
The company’s difficulties were attributed to cash-flow problems.
Daniel Plant, SFP group partner, said: "Chevron Autohire Limited owed a sum to trade creditors, had not made provisions to pay HMRC and has simply run out of cash.
"Vehicle hire has been severely impacted by rising fuel costs with competition for less business even more fierce. The company has ceased trading and we are currently seeking a buyer for the business and assets."