Administrators have stepped in to run automotive engineering group Mayflower after talks with its creditors failed.

The BBC said that, earlier this week, Mayflower’s market value fell by a third when a £20 million black hole was found in its accounts.

The accounting error caused the departure of Mayflower’s chief executive John Simpson, as well as other senior executives, the report said, adding that three of the High Wycombe-based bus and car part maker’s subsidiaries will also be run by administrators.

The BBC said the failure to agree a refinancing deal with its lenders puts the livelihoods of thousands of workers at risk and it has also emerged that Mayflower’s company pension scheme is also deeply under funded, which would leave workers at risk of losing their pensions before new government protection rights come into effect next year.

In Scotland, 1,000 jobs are on the line at bus factories in Falkirk and Larbert, in Stirlingshire, the report said.

According to the BBC, the three subsidiaries at risk are Mayflower’s management services company, its automotive business Mayflower Vehicle Systems and its UK bus building business Transbus International.