A NEW buyer has taken over a Hampshire bus company two weeks after it went bust.

Velvet - which traded as Black Velvet Travel Ltd - went into administration on July 16 after financial pressures and increased competition meant it was unable to survive.

But today administrators announced new owner Adam Smith has secured a dealt to rescue the company and promised it will keep its name.

It will continue to run the will continue to operate routes A, S1, S2, B4, M and 503.

A statement released by administrators Chantrey Vellactott said: “Adam Smith, who has many years of experience in the bus industry, has completed a deal to take over the company, two weeks on from stepping in to run services on an interim basis after seeing news of Black Velvet Travel ceasing operation after running into financial difficulty.”

Chantrey Vellacott restructuring specialist Terry Evans stressed it will secure the long-term future of bus services across the community and added: “We're delighted a deal has been completed - safeguarding the long-term future of Velvet buses, its bus services in the community, along with jobs,”

“We've been working with Black Velvet Travel for around two months and always held out hope during this time that there was a future for the company.”

“We appreciate the support and patience of all parties involved in this process and we are confident Black Velvet Travel is now well placed to move forward.”