A HAMPSHIRE bus company has lost its licence after two wheels fell off one of its vehicles on the M3 and caused a crash.

The minibus, which did not have an MoT, was transporting passengers along the busy motorway when an HGV was struck by one of the wheels that sheared off.

Eastleigh-based Black Velvet Travel Ltd (BVTL) was later placed in compulsory liquidation and has now been stripped of its licence.

A report by the Traffic Commissioner, Sarah Bell, says it was “pure chance” that no-one was killed or seriously injured in the incident.

The report adds: “The evidence before me provides sufficient evidence that there was a serious lack of judgement by both the operator and its driver.”

The report says the driver was fined and had three penalty points added to his licence after he admitted using a vehicle that was in a dangerous condition.

But no action was taken against the company because by then it had ceased trading.

BVTL and its sister company, Western Greyhound Ltd (WGL), of Newquay, Cornwall, have now been stripped of their licences over what Miss Bell described as “unsatisfactory” vehicle maintenance. Their director, Michael Bishop, has been disqualified and banned from being involved in the management, administration or control of a transport operation.

Miss Bell said Mr Bishop became the director of BVTL in August last year, having previously been the director of a company that went into liquidation owing more than £1 million.

Her action against the two companies follows a public inquiry on September 10.

The accident involving the minibus happened in December last year. In the same month the Driver and Vehicle Standards Agency (DVSA) was notified of several complaints about the reliability of the BVTL services. Miss Bell said her office was also warned about maintenance issues at WGL.

The collapse of BVTL, which operated eight services across Southampton and Eastleigh, resulted in 16 drivers and seven administrative staff being made redundant.

Speaking at the time the managing director, Phil Stockley, said financial pressures and increasing competition meant the company was unable to survive.

“There are too many bus operators and not enough work to go round,” he said.