LateRooms, Super Break, and Malvern Travel Technology Limited have ceased trading
THE company that owns travel companies including LateRooms.com has gone into administration.
It means that LateRooms, Super Break and Malvern Travel Technology Limited have all ceased trading with immediate effect.
In a statement, the group said: “Following news of Cox and Kings India’s loan default a month ago, the situation has deteriorated rapidly resulting in the withdrawal of any further funding for Malvern Group.
“The management team recently appointed advisors from KPMG to undertake an accelerated sales process to ensure further investment, and have engaged with our principal bankers to secure interim funding.
“Unfortunately, given the short time frame enabled by our cash position and despite interest from potential purchasers, we have been unable to secure bank support or a sale of the business.”
The statement added that LateRooms, Super Break and Malvern Travel Technology Limited have all ceased trading with immediate effect.
Both LateRooms and Super Break advised their Twitter followers to check the Malvern Group’s website for the latest information.
It’s not known at the moment how many Brits are affected.
Malvern Group, which is owned by Indian tour operator Cox & Kings Ltd (a separate company from Cox & Kings Travel Ltd UK), had been trying to sell its business and secure investment earlier year without success according to Travel Weekly.
It had enlisted the help of KPMG, but had defaulted on a debt payment, which led to the announcement today.
The company is expected to appoint administrators on Friday.
What are my travel rights if a firm goes under?
You need to check if your holiday was are ATOL protected.
It’s a legal requirement that every UK travel company which sells package holidays holds an Air Travel Organisers’ Licence – or ATOL.
ATOL protection means that customers won’t be stranded abroad if the company goes bust and they will be refunded for trips that can’t go ahead.
If your holiday doesn’t include flights, you could still be proteced through ABTA.
Holidaymakers who booked with a credit card may also be able to get a refund for cancellations from their card providers under Section 75 of the Consumer Credit Act.
This is because card providers are jointly liable when a purchase or service isn’t fulfilled but it only kicks in if you paid at least £100 on credit card.
If you paid less than £100 on credit card or if you paid for your flights on debit card, you may be able to get a refund via a scheme called Chargeback but there’s no guarantee.
Also, check your travel insurance to see if it covers travel company failures – just be aware you’ll likely have to pay an “excess” before you can get any money back.
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A number of travel firms have gone into administration in recent years.
Just earlier this year, Wow Air collapsed, leaving many passengers stranded.
Sun Online Travel has contacted Malvern Group for additional comment.