Restructure and recovery - Summertime Blues in the travel sector
Colin Hardman details the complexities behind the demise of another travel group.
Colin Hardman talks us through the demise of Low Cost Holidays and the trouble ahead in the travel sector. This article first appeared in Recovery magazine - Winter 2016 edition.
The Lowcostholidays Group had grown to become one of the largest sellers of package holidays and hotel accommodation worldwide, with a 500 strong workforce, annual transaction values in the region of £500m and more than three million flights arranged to destinations across the globe each year. Its abrupt collapse this summer left over 27,000 travelling holidaymakers in a panic over whether their hotel and travel arrangements would be honoured and a further 110,000 future holiday bookings at risk of being cancelled. The speed of its demise and the cross-border aspects has raised some interesting issues for us as administrators and also for our legal advisors. A number of these issues could very well have had a very different conclusion in a post-Brexit world outside of the current EU insolvency regulation, if that is the type of world that Brexit will bring.
By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
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By necessity, this briefing can only provide a short overview and it is essential to seek professional advice before applying the contents of this article. This briefing does not constitute advice nor a recommendation relating to the acquisition or disposal of investments. No responsibility can be taken for any loss arising from action taken or refrained from on the basis of this publication. Details correct at time of writing.
This article was previously published on Smith & Williamson prior to the launch of Evelyn Partners.