Pegasus Travel lays off 15 workers, citing cashflow problems and the recession, STV News can reveal.
A Perth-based bus company has gone bust citing cashflow problems caused by the recession - leaving 15 workers out of a job.
Pegasus Travel broke the news to their staff on Tuesday morning.
The company, which has been in operation since 1993, said they had experienced a huge downturn in their private hire business in the last six months, forcing them to close their business for good.
The staff laid off includes 13 drivers, one engineer and one apprentice engineer.
Pegasus owned and operated 10 vehicles - ranging from 33-seater buses to 53-seater executive coaches - for private hire and on scheduled service routes.
They had two bus routes in the Perth area - one running nine times a day to and from to Gleneagles Hotel and another three times a day to and from Newburgh in Fife.
These will now be taken over by other operators, including Perth-based transport giants Stagecoach.
Duncan Graham, director of Pegasus Travel, said they had been forced to cease trading due to money problems
He said: "There has been a general cash flow problem and the recession has also had an impact.
"The private hire side of the business has experienced a down-turn in the past six months.
"It really wasn't possible to keep the business going and I don't see any way of re-starting it in the future.
"I would like to thank our staff for their hard work over the years and I hope they will find new work in the public transport sector."
A spokesperson for Stagecoach East Scotland said: "Following this announcement, Stagecoach East Scotland, along with other local operators have been asked by Perth and Kinross Council to temporarily fulfil the Pegasus Travel routes and services to ensure travellers around the region still have access to bus services at this time.
"This is only a temporary measure, however the Public Transport Unit at Perth and Kinross Council are currently looking at longer term plans."