LateRooms.com and superbreak.com have appointed administrators as its owner Malvern Group succumbs to ‘significant cash flow pressure’.
Tracey Pye and David Costley-Wood from KPMG Restructuring have this morning been appointed joint administrators to Laterooms Limited, Superbreak Mini-Holidays Limited and Malvern Travel Technology Limited.
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 businesses ceased operations on August 1, prior to the appointment of the joint administrators.
The joint administrators are working closely with both ABTA (Association of British Travel Agents) and the UK CAA (Civil Aviation Authority) to minimise disruption to customers.
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.
“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.