Cruise Control folds with £10 million of debt
The Civil Aviation Authority and ABTA were today sifting though the records of Cruise Control as they began to assess the fall-out of the retailer’s collapse.
The plug was pulled on the independent agency despite last ditch attempts to save the company.
A £4 million refinancing package had been due to be agreed with outside investors to keep the business going. But with debts of around £10 million, the package was deemed insufficient. At least 250 jobs are expected to be lost.
Cruise Lines who sold through Cruise Control declined to comment.
Cruise Control, run by Paul Moore, claimed to be the UK’s largest independent cruise retailer selling 16% of all cruises – around 160,000 passengers.
At the time of the failure it was estimated it had 20,000 customers overseas and 40,000 forward bookings. All holiday will be honoured.
ABTA said it was too early to asses how much the failure will cost the association although it will comfortably exceed £1 million.
A spokeswoman said: “We are going through the records and only when that has been completed will we know how many passengers are overseas and how many forward bookings there are.”
“All passengers currently on cruises will not be affected and will be able to continue with their holiday. Customers who have made a booking with Cruise Control and are yet to travel should be able to go on their holidays and cruises as planned.
“In the first instance, customers who have booked through Cruise Control and yet to travel should contact the cruise line or tour operator with whom they are travelling.
“Clients who need further assistance should contact the ABTA claims department on 020 7637 2444.”
Cruise Control’s tour operating arm, Cruise Promotion, which sold cruise and stay packages on the Nile has also folded with the CAA calling its £1.64 million bond.
It is estimated there were 600 people overseas, all of whom will be able to continue their holiday.
The collapse is the second major business blow for the Moore family. Paul’s father Richard saw his own retailing business, Book’n’go collapse in 2002, which bars him from being a director of a travel company for five years.
A statement from Cruise Control said: “Cruise Control (UK) Ltd can advise that the institutional investor which was due to invest £4 million into Cruise Control has since withdrawn its funding.
“This was due to the feeling that the investor would not be supported by certain trade creditors. Therefore, the directors have had no choice but to instruct Price Waterhouse Coopers to put the company into voluntary liquidation.”
Question marks over the operation first emerged after a number of cruise lines issued a ‘stop-sell’ notice on the company.
Complete Cruise Solution brands P&O Cruises, Princess Cruises, Ocean Village and Cunard were the fikrst to sever links with Cruise Control.
ABTA had been monitoring the situation.
Report by Steve Jones and Phil Davies
Phil Davies
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