Administrators seek buyers for Super Break and sister companies

KPMG Restructuring said it is ‘inviting offers’ for Malvern Group and its subsidiaries after being appointed administrators.

Tracey Pye and David Costley-Wood from KPMG have been appointed joint administrators to Laterooms Limited (trading as LateRooms.com), Superbreak Mini-Holidays Limited (trading as Super Break) and Malvern Travel Technology Limited, after parent company Malvern Group ceased trading last week.

In a statement, KPMG said the ‘Manchester-based companies had recently come under significant cash flow pressure following news that one of the Group’s principal shareholders had defaulted on its debt repayments and would not be able to support the business in the short term’.

The statement added: "The joint administrators are working closely with both ABTA and the UK CAA to minimise disruption to customers."

It is pointing customers to two websites, www.laterooms.com and www.superbreak.com. Both addresses go through to a Malvern Group web site, which gives details of which bookings are being accepted, which have been cancelled, and what affected customers need to do.

KPMG added ‘the customer contact centre is no longer operational and therefore will not be available for queries’.

Tracey Pye, joint administrator, said: "The directors of Malvern Group embarked upon an accelerated sales process to bring further investment into the business. However, with the cash position of the company deteriorating rapidly, this process was unfortunately unsuccessful, prompting the directors to take the difficult decision to appoint the administrators.

"Coming in the midst of the summer holidays, we understand this news will be of grave concern to 23,000 LateRooms.com and 19,000 Super Break customers who have future bookings with the Group.

"Detailed information regarding how bookings will be affected can be found on the LateRooms.com and Super Break websites. Unfortunately the customer contact centre is no longer operational, so we kindly request passengers do refer to the information online in the first instance.

"We continue to invite offers for the business, and would urge any interested parties to make their interest known as soon as possible."

The companies employed 253 employees across sites in both Manchester and York. With operations ceasing immediately upon the appointment of the joint administrators, the majority of employees have been stood down while the joint administrators assess options for the business.

The joint administrators have retained 43 employees as they continue to seek buyers for the business and its assets.

KPMG said UK hotel-only or ticket-only bookings with Super Break have been cancelled, are ‘likely not’ covered by ABTA’s financial protection scheme and cannot be refunded by administrators. Gift vouchers are also not valid and can’t be refunded. Customers who have paid by credit or debit card have been told to contact their card issuer.

Package holidays with a third-party agent ‘should be financially protected by ABTA’, while customers who made flight-inclusive bookings with Super Break need to contact the Civil Aviation Authority.

Some ABTA agents have expressed confusion over the advice they should give clients.

ABTA has defended itself after agents complained they were misled into thinking that hotel-only bookings with Super Break were protected.