Insolvency & Rescue Solutions for the Travel Sector
The UK’s travel industry has been devastated by the pandemic, with many businesses collapsing – the sector has spoken out against the government for not doing enough.
Trade body ABTA estimates some 195,000 jobs have been lost or at risk and more than half of its members did not think they could survive another three months in the current conditions.
Here at Company Debt, we have significant experience in both closing and restructuring travel businesses. Get in touch for a free, no-obligation discussion about your situation with one of our licensed insolvency practitioners.
Travel Pressure Points
What are the Reasons for Travel Insolvency?
Before the pandemic, the sector was rocked in 2019, when Thomas Cook failed, as did York-based Superbreak and Late Rooms. The loss of these businesses indicated that the market was highly competitive and those with a too high debt burden and that did not have a strong online presence would not make it.
However, the arrival of coronavirus led to a rapid increase of insolvencies, including airlines such as Flybe, which again already had cashflow problems, while Virgin Atlantic is also in difficulty. Other well-known names have now gone, including coach specialist Shearings and Kanoo Travel, which specialised in corporate travel and foreign exchange.
Although the UK’s travel sector is now slowly opening for business, many travelers remain uncertain about booking trips and there is confusion over the government’s travel, testing, and quarantine system and ABTA has said it is even considering legal action against the government over how international travel rules have operated. There has been anger, for example, why Greece and Spain are not on the ‘green list’ and why Portugal was suddenly removed from this, while the EU appears to have a more coordinated approach.
Meanwhile, a lawsuit against the government is underway, led by Manchester Airports Group, which is joined by Ryanair, Virgin Atlantic, Easy Jet, Tui, and IAG, parent of British Airways.
Help for your insolvent travel company
If your travel company is experiencing difficulties, you should not delay seeking advice. Business owners need to address problems and if they put this off, then their options become more limited.
Company Debt provides expert support and advice on the next steps for an insolvent business, whether rescue, recovery or liquidation.
Knowledge – Insight – Solutions
We are fully licensed and accredited insolvency practitioners based in north London, and with decades of combined partner experience in helping directors find positive solutions to business challenges.
Our goal is first to understand your situation as fully as we can, and then to explain the range of options available to you.
We focus on practical advice, without jargon. We practice total transparency around costs and fee structures. Our wish is to support you as fully as possible so that you can emerge from this situation in the best possible situation.
As a first step, simply book in a call with one of our team to learn more about our approach, and to take advantage of a fee consultation that carries no obligation.
Book My Consultation
If you need an experienced insolvency practitioner or business rescue specialist, seek advice now.
- Your free consultation will be led by one of our experienced London insolvency practitioners
- You can speak via phone, online meeting or in person so that we can listen carefully to the facts about your situation
- The team will provide a preliminary view of the likely best outcome, proposed strategy, and the likely cost
- We specialise in helping limited company directors needing immediate professional debt advice