Thousands of users of the Ring and Ride service provided by ATG will be affected by the administration. The company also employs 900 people. The service provides transport for people with special needs in and around the Birmingham area. It transports about 2,800 children and adults between their homes and schools or colleges, and has contracts across the region, including with Warwickshire and Worcestershire county councils.
Birmingham City Council has said the services are continuing as normal but it is monitoring developments.
The administrators at Duff and Phelps said
Ingram said: "The majority of the services that the charities provide are vital to those that rely on them for transport on journeys they would not otherwise be able to make.
"We understand the uncertainty and concern that the appointment of administrators will have on all of the service users, in addition to the employees, suppliers and supporters of the charities.
"We are in contact with Birmingham City Council, Transport for West Midlands and the West Midlands Combined Authority and are working with them to try and ensure that there is no interruption to the day to day operations of the charities whilst we seek to secure the long term provision of the essential services that they provide.
"We will of course be communicating either directly or in collaboration with the local authorities to all of those who are affected by our appointment to ensure that they understand its ramifications and minimise the uncertainty as far as we are able."