Barwell Travel ceases trading - UPDATED
Barwell Travel has suspended trading after 38 years, partly blaming the current credit crisis.
The Surrey-based tour operator, which specialised in package holidays and flights to La Manga, has posted a message on its website informing customers and agents of the news, and said all trading activities have been suspended until further notice.
"During the past few months, the company has been in serious negotiations with numerous interested tour operators and investors with a view to concluding either a trade sale or inward investment," says the statement.
"It is deeply regretted, partially due to the current credit crisis, that management were unable to get one of those deals concluded prior to the expiry of the current ATOL license.
"As a consequence, the directors took the decision to protect the company's affairs by seeking the appointment of administrators to the company."
Geoffrey Bouchier and Paul Clark of Menzies Corporate Restructuring have been appointed joint administrators and are currently evaluating Barwell's financial position and prospects.
They are currently in discussions with the various interested parties with the aim of selling the business so that existing bookings can be fulfilled.
An update on the position regarding the cancellation of any future bookings is due to be made later today.
The CAA said there are a small number of holidaymakers currently abroad and an estimated 300 with bookings who are yet to travel.
Barwell Travel held ATOL licence 2146 until it lapsed at the end of March 2008 and provided a £663,525 bond to the CAA, which will be used to protect customers.
Administrators are in the process of providing the CAA and ABTA with all passengers names and addresses and booking details.
Customers wishing to discuss the situation with Barwell Travel are advised to call 0208 786 3000.
Barwell Leisure trades under the names ‘The Barwell Collection', ‘Golf Groups Direct', ‘La Manga Tennis', ‘Barwell Events', ‘Barwell European Classic Resorts', ‘Barwell Events & Sports Travel' and ‘Footballers' Golf Classic'.
It principally sold package holidays and flights to La Manga in Spain.
By Bev Fearis
With permission from Travelmole
Barwell Travel abandons clients
Customers of collapsed operator Barwell Travel have been left in limbo after being told that the financial failure insurance they were sold as part of their packages will not necessarily cover the cost of their holidays.
Although a message on Barwell Travel's website tells clients who had already paid for holidays to contact insurers Towergate Chapman Stevens, a spokesman for the insurance company said today it was unsure if they were protected.
"We have requested our number be taken off the Barwell website because we can't do anything until the company is declared insolvent, which won't be until October 1," said a spokesman for Towergate Chapman Stevens.
"Customers were give financial failure insurance as part of their holidays but we don't know if those due to travel before October 1 will be able to claim refunds as, right now, the company has not been made insolvent."
He said customers of the collapsed holiday firm, which sold holidays to La Manga Club in Spain, were being redirected to administrators Bridge Business Recovery on 020 7025 6130.
James Carr of Bridge Business Recovery confirmed there was no rescue plan for Barwell, which will be declared insolvent on October 1, but he said the firm was unable to advise customers in the meantime.
"It's terrible, people were calling us from abroad yesterday saying that they forced to pay again for their accommodation, but we can't do anything to help them," said Carr.
"We are not dealing with the failure either, so we are telling customers to claim on their credit cards or their insurance, but we don't know if they can claim until the company is insolvent."
Barwell was not an ABTA member.
Although Barwell Travel had an ATOL, it was licensed to sell just 600 packages a year and it is believed the majority of its bookings were for accommodation-only at La Manga Club, which would not have been protected.
The Civil Aviation Authority is investigating the collapse and a spokesman said today it was still unclear if any of Barwell's customers were protected. "To my knowledge we haven't had any calls from customers inquiring about the collapse," he added.
Barwell, founded 40 years ago, had temporarily ceased trading in 2008, but was bought at the last minute by LeisureFare, a tailormade specialist and consolidator with a call centre in London, though it continued to operate independently.
No-one from parent LeisureFare was available for comment today.
With permission from Travelmole
Customers of collapsed operator Barwell Travel have been left in limbo after being told that the financial failure insurance they were sold as part of their packages will not necessarily cover the cost of their holidays.
Although a message on Barwell Travel's website tells clients who had already paid for holidays to contact insurers Towergate Chapman Stevens, a spokesman for the insurance company said today it was unsure if they were protected.
"We have requested our number be taken off the Barwell website because we can't do anything until the company is declared insolvent, which won't be until October 1," said a spokesman for Towergate Chapman Stevens.
"Customers were give financial failure insurance as part of their holidays but we don't know if those due to travel before October 1 will be able to claim refunds as, right now, the company has not been made insolvent."
He said customers of the collapsed holiday firm, which sold holidays to La Manga Club in Spain, were being redirected to administrators Bridge Business Recovery on 020 7025 6130.
James Carr of Bridge Business Recovery confirmed there was no rescue plan for Barwell, which will be declared insolvent on October 1, but he said the firm was unable to advise customers in the meantime.
"It's terrible, people were calling us from abroad yesterday saying that they forced to pay again for their accommodation, but we can't do anything to help them," said Carr.
"We are not dealing with the failure either, so we are telling customers to claim on their credit cards or their insurance, but we don't know if they can claim until the company is insolvent."
Barwell was not an ABTA member.
Although Barwell Travel had an ATOL, it was licensed to sell just 600 packages a year and it is believed the majority of its bookings were for accommodation-only at La Manga Club, which would not have been protected.
The Civil Aviation Authority is investigating the collapse and a spokesman said today it was still unclear if any of Barwell's customers were protected. "To my knowledge we haven't had any calls from customers inquiring about the collapse," he added.
Barwell, founded 40 years ago, had temporarily ceased trading in 2008, but was bought at the last minute by LeisureFare, a tailormade specialist and consolidator with a call centre in London, though it continued to operate independently.
No-one from parent LeisureFare was available for comment today.
With permission from Travelmole
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