The firm responsible for parking enforcement in a Staffordshire town is facing the threat of administration.

Shares in Legion Group plc have been suspended.

The Hertfordshire-based security company has held the contract for parking enforcement in Stafford since the borough council took over responsibility from the police in 2007.

But bosses are looking for a buyer to stave off insolvency proceedings. Council chiefs said they were aware of the situation but would not comment further.

Parking enforcement in the borough will continue as normal for the time being.

The decision to sell the firm follows discussions with HM Revenue and Customs amid fears the company may not have enough cash to pay its VAT and PAYE demands.

In a statement issued to the London Stock Exchange, bosses admitted administration “may be a possible outcome” if the firm cannot be sold as a going concern.