Como Street Travel brand ditched following alleged fraud

The directors of Como Street Travel confirmed today that all of its assets and liabilities were transferred to sister company Ocean Holidays prior to the former being placed into solvent administration  

Joint managing director and shareholder Harry Hastings said this morning that all Como Street Travel creditors had been paid following an alleged £1.1 million fraud at the southeast-based company almost two years ago.

The deficit in the company’s TTA Trust account was discovered following the sudden departure of one of Como Street’s senior managers and shareholders in October 2012.

As a result, its beatthebrochure brand, which represented half of the company’s revenues, was sold to raise £650,000 and the remainder of the deficit was plugged by the TTA’s insurer AIG.

Additionally, a third-party shareholder secured a loan of more than £1 million to maintain the integrity of the Trust Account and to enable the business to remain solvent, said Hastings.

However, the administrators decided not to save the business as a going concern and instead all its assets and liabilities were transferred to Ocean Holidays, which is also owned by Como Street’s remaining directors, brothers Daniel and David Ox and George and Harry Hastings.

The Travel Trust Association said the directors had worked with the TTA, the CAA and AIG on the transfer of the business to Ocean Holidays, which specialises in Florida and the US and worldwide high-end luxury travel. In April, it opened a new office in Kissimmee, Florida.

Hastings said: "We have been very successful in turning the business around, this is a real phoenix from the flames story.

 "A requirement of the restructure was that all the shareholding be held equally by Daniel Ox, David Ox, George Hastings and Harry Hastings within Ocean Holidays Ltd as these were the main drivers of the business and were not suitably incentivised.

"This was done with the full knowledge and acquiescence of the TTA, CAA and the Como Street Travel majority shareholder John Ox."

Of the 30 staff that were made redundant following the sale of beathebrochure, about 10 have been reinstated, said Hastings. "We had 80 staff in 2012, that number dropped to around 50 but now we are back up to close to 100," he said.

"We are on a major recruitment drive at the moment and when we have recruited we have tried to re-employ those who were made redundant."

Gary Lewis, group managing director of The Travel Network Group, added: "This is a classic case of how the TTA works with its members when they encounter challenges.

"With 100% financial protection to our business partners and consumers this business has overcome the difficulties it faced two years ago and is now going from strength to strength. Ocean Holidays is today trading as a TTA and ATOL member.

"Since the restructuring took place two years ago, Ocean Holidays has emerged an even stronger more confident business with a great customer proposition and robust management team."

Hastings said investigations into the alleged fraud were ongoing, but said he was unable to give further details.