To comply with the Transport Act 1985, in 1986 the assets were transferred to a new legal entity and the operation rebranded Burnley & Pendle Transport Company. Deregulation opened Burnley & Pendle's routes to competition from other operators, with Blackburn Transport, Tyrer Tours and Victoria Coaches establishing competing services. To stave off the competition five AEC Routemasters were purchased with each named after a character from the television series "EastEnders". Deregulation also saw many Greater Manchester Passenger Transport Executive services contracted out. Burnley & Pendle successfully tendered a number of routes with their sphere of operation extending to Blackburn, Bury, Manchester, Preston, Rawtenstall, Rochdale and Skipton.