Holiday company goes bust and puts the blame on Brexit!
Holiday booking company Lowcost Travelgroup has gone into administration, as uncertainty ahead of the EU referendum and the fall in the pound were blamed for its demise.
The group has 27,000 holiday makers in resorts and 110,000 more with bookings. Administrators said Lowcost Travelgroup ceased trading on Friday, with the loss of 120 jobs in the UK.
Smith & Williamson and CMB Partners were appointed administrators after the firm’s own rescue attempts failed.
Those “exhaustive” attempts had been “hampered by the recent and ongoing turbulent financial environment”. Customers’ flight bookings will be valid in almost all cases, but hotels will need to be paid for, a company spokesperson said.
Smith & Williamson said intense competition had caused the collapse but also the increased terror threat and the uncertainty before and after the recent referendum.
“The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound,” said Finbarr O’Connell of Smith & Williamson.
“Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcost Travelgroup Limited into administration. ” The group operated a travel agency business from headquarters in the UK and offices in Spain, Switzerland and Poland.
The administrators said 60% of customers were British.