CMV collapse: ‘We could just not save this wonderful business’

Agents have expressed sadness at the news that small-ship UK cruise line Cruise & Maritime Voyages (CMV) has ceased trading.

The Essex-based company was placed into administration on Monday afternoon after failing to secure a financial lifeline.

Posting on the Facebook group Travel Gossip, many agents said they were shocked and saddened by the news.

One described CMV as a ‘well placed product with a good following’. Many described CMV as a ‘lovely company’, and several said its demise would leave a gap in the small-ship cruise market.

An announcement was posted on CMV’s website on Monday evening, stating that parent company South Quay Travel Ltd had appointed Paul Williams, Phil Dakin and Edward Bines of Duff & Phelps as joint administrators.

Duff & Phelps confirmed that CMV had ceased trading with immediate effect, including its sales offices in Australia, France, Germany and the US and all future bookings have been cancelled. In France the company traded as Croisieres and in Germany it was Transocean Kreuzfahrten.

"Administration is likely to result in the redundancy of the UK employees and an uncertain future for those employees in the wider group," said the administrator.

CMV had been forced to suspend all its sailings from 13 March till 25 August, resulting in the cancellation of 50,000 holidays, which had to be refunded.

Paul Williams said: "The travel, tourism and wider hospitality industry has been engulfed with a devastating and unprecedented global pandemic of seismic proportions impacting very hard on CMV’s once thriving cruise business, compounded by last week’s Foreign and Commonwealth Office advisory against cruise travel.

"Unfortunately, despite the collective very best efforts and being very close to securing the long-term finance needed, CMV was unable to conclude the funding within the timescales required which has led to the administration of the business."

In a statement, CMV chief executive Christian Verhounig, apologised to ‘loyal and hardworking’ staff and travel trade partners, and thanked them for their support.

"The directors have all worked tirelessly with CMV’s financial advisors, investment bankers, lawyers, and numerous private equity and hedge fund investors to try and secure the funding required to enable CMV to weather the storm," he said.

"Only last year CMV was celebrating a record trading year and our first decade in cruising but the CMV journey has tragically been cut short by this unprecedented global pandemic. Prior to the onset of Covid-19, we had sold nearly 90% of 2020 capacity and we had bullish prospects for the future having sold nearly 50% of 2021 UK capacity.

"Despite this positive forward booking position, we could just not get the financing deal over the line in time to save this wonderful business. We are truly sorry to our loyal and hard-working shoreside staff and seafarers, travel trade partners and suppliers who have all patiently stood by us and to our valued passengers for the disappointment and further disruption to their cruising holiday plans.

"On behalf of the CMV family, directors and shareholders, I would like to thank everyone for their great support and sincerely apologise for these circumstances which are directly related to Covid-19 and beyond our control."

ABTA said the ‘vast majority’ of cancelled holidays are covered by ABTA or ATOL.

"As there are a number of different companies involved, and different types of arrangement, what customers should do next will depend on who they booked with; and what they booked," it said.

Further guidance is available here.

James Cole, founder and Managing Director of cruise start-up Panache Cruises, said: "We are sorry to hear of the news of Cruise and Maritime Voyages. They had a great reputation in the market and a loyal customer base. It’s a sad day for the British cruise industry."
 

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By Linsey McNeill, Editor (UK)