11 March 2008

Administrators appointed to Leapfrog Group's Leisure World Holidays

North Sydney based travel and incentive company, the Leapfrog Group appears to be taking a leap and a bound over its suppliers by administrators having been appointed to the groupââ¬â¢s Leisure World Holidays.

A number of product suppliers to Leisure World Holidays contacted The Mole over the last few days, complaining that they have been advised about the administration of Leisure World Holidays.  

They also said that they have been left out in the cold related to monies owed to them and that they now have to wait in line with all the other creditors while it appeared that the Leapfrog Group was operating and trading as normal.

In what industry members are calling a rather interesting and surprising move, the Leapfrog Group apparently wholly owned business Leisure World Holidays was placed into administration on 28 February, with the first administrators meeting taking place today [Monday].

It also appears that when the Leapfrog Group was bought by UK based MKM in late 2007, Leisure World Holidays metamorphosised into Berry Street Travel, the name that it currently appears under in ASICââ¬â¢s records, with ASICââ¬â¢s records showing that the name change took place in August 2007

In previous incarnations the company has also been known as Leapfrog Travel and Lifestyle Solutions Pty Ltd, Leapfrog Travel Solutions Pty Ltd, Leisure World Holidays, Pty Ltd and Spree Holidays Pty Ltd.

The reason for this metamorphosis and name change late least year is not clear, except that from TCF records, it appears that the Leapfrog Group and its MD Brian Smillie, opened another travel agency licensed operation on 10 October, 2007, under the name of Express Tours, with Brian Smillie as a Director, with Express now located at Leapfrogââ¬â¢s new offices at 61 Lavender Street, North Sydney.

Interestingly, The Mole spoke with Brian Smillie at The Leapfrog Group this afternoon and Mr Smillie confirmed that Leisure World Holidays had been placed in administration and that there were a number of creditors, including a number of suppliers of product to the group.

He would not reveal the extent of the administration, but he did say though that the company had picked up a substantial bad debt, but would not reveal the name or the amount of the bad debt.

What Mr Smillie did reveal though was that he was the largest creditor by far, but again would not reveal the amounts of monies owed to him by Leisure World Holidays.

The Mole asked Mr Smilie did he think it was fair to put a company owned by an apparently solvent company like the Leapfrog Group into administration leaving its suppliers carrying the debt, he said, ââ¬ÅâœIt is down to the administrators now to sort this out and determine how much they can pay to the creditors.ââ¬~

When asked shouldnââ¬â¢t the Leapfrog Group honour the debts of its companies, he would only say that the administrator had been appointed and that it was up to the administrator to work it out.

The Mole asked Mr Smillie if the placing into administration of Leisure World Holidays, a company seen by the industry as engrained in The Leapfrog Group would damage Leapfrogââ¬â¢s reputation with the industry, he said, ââ¬ÅâœWe hope not and that people will judge us over our performance and not over issues like this.ââ¬~

The Mole also asked Mr Smillie if the Leapfrog Group was using the travel agency services of Leisure World Holidays, even under administration, to which he replied, ââ¬ÅâœNo we are not and we will be contracting another agency to handle that work for us.ââ¬~ 

Interestingly, he did not mention Express Tours, which is owned by the Leapfrog Group and operates out of the same premises.

Please let The Mole have your comments, especially if you are owed money by Leisure World Holidays.

A Breaking News Report by The Mole.

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• Perhaps ASIC should check Leisure World Holidays
  
  

  With the profitable arms of the Leapfrog Group having been sold for a tidy sum it would appear that Leisure World by any name has most probably been trading while insolvent for some time. Doesnt that put the onus back on the Directors?

  By briangr, Tuesday, March 11, 2008
• Decline services to Leapfrog Group
  
  

  As a potential victim of Leisure World Holidays demise it is now our intention to decline our service to any entity associated with Leapfrog Group and call on all other suppliers to do the same. They wont have much of a loyalty programme without product.

  By briangr, Tuesday, March 11, 2008
• So much for TCF
  
  

  And what TCF is doing...... with all the name changes.... couldn't they smell a rat?  If the name was an Ethnic name I bet they would.... But I bet that Mr Smillie is smiling too.

  By sales, Monday, March 10, 2008