Online Travel Group ‘ran out of options’ – administrator
The Online Travel Group, which failed last week, had credit terms “drastically shortened†prior to its collapse.
The London-based company, launched in 1999, had a turnover of £7.7 million for the year to March 2007, up £2.5 million from the previous financial year, according to administrators Neil Bennett and Michael Healy of Leonard Curtis who are in the process of selling the businesses World Travellers (UK) Ltd and Online Travel Insurance Services.
Online Travel operated a number of travel websites providing travel insurance, and bookings for ferry crossings, airport parking, hotels and holidays (see previous TravelMole story). Â
All 16 call centre staff based in Leeds have been made redundant. There are currently two staff members at the company’s London headquarters out of a total staff of 20.Â
There is no indication of the financial situation or debts of the company.
Bennett said: “It is apparent from our brief investigation that the company had run out of options. Â
“We understand that credit terms had been drastically shortened by key trading partners, and this, combined with the credit crunch and general economic downturn, lead to a dramatic cutback in consumer spending on all but the essentials. Â
“We are currently selling parts of the business to preserve value where possible.â€
He added: “Ferry bookings where passengers have already travelled are largely unaffected.
“We understand that forward bookings are mostly being honoured by ferry operators under their agency agreements. Â
“All package holidays, confirmed and not yet travelled, are being dealt with by Freedom Travel Group to protect customers’ holiday bookings and ensure no disruption to confirmed holiday plans.â€
by Phil DaviesÂ
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Phil Davies
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