DELOITTE JOINT ADMINISTATRORS have made nearly 400 redundancies at Bowen Travel Group after the Leicestershire coach company was unable to pay its staff.
Matthew Cowlishaw and Dominic Wong, partners at Deloitte, were appointed as joint administrators to Bowen Travel on 25 October 2012.
A total of 393 staff have been made redundant, with a skeleton staff of about 55 employees staying on to fulfil remaining operations, Deloitte said.
Deloitte said the depressed leisure sector led to a "serious cash flow crisis" at the company.
"After exploring all possible avenues for the future of the group, it became clear that due to lack of funds it would be unable to continue to trade. As a result an orderly closure is being implemented," said Cowlishaw.
Prior to the appointment of Deloitte, a restructuring was considered and a sale of all three divisions sought. However, a deal could not be concluded in the time available.
"We are working closely with Bonded Coach Holidays to assist impacted customers, ensuring that all are fully aware of the situation and next steps. Customers will receive a letter during the coming days providing information and advice for claiming a refund for unfulfilled holidays," Cowlishaw added.
The group is comprised of Bowen Travel Limited, LF Bowen, Jeffs Coaches Limited, York (Bros) Northampton Limited, Bowen Travel Transport Limited and Woottens Luxury Travel Limited.
You may also like
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources.