A travel agency that was turning over approximately AUD 2 million a year has reportedly been placed into voluntary administration after a proposed merger fell through.
The travel divisions of Round the World Experts Pty Ltd and RTWexperts Pty Ltd entered voluntary administration on 9 May 2016, with Timothy Mableson and Martin Lewis of Ferrier Hodgson appointed to manage the companies, SmartCompany has reported.
A spokesperson for Ferrier Hodgson told SmartCompany a decision not to proceed with a planned merger with a “Queensland-based group” was a key factor in the decision to enter voluntary administration.
The Ferrier Hodgson spokesperson said that because the travel division of the business has ceased trading, “the companies are not able to complete their bookings or refund amounts paid to customers”.
“All travel customers with outstanding and unfulfilled bookings – where tickets have not been issued – have been notified and the relevant travel agencies and wholesale partners (for example Groupon, Our Deal or Living Social) associated with the respective booking are working the voluntary administrators to minimize the impact to these customers,” the spokesperson told SmartCompany.
The companies also operate a web design and app development business, which is continuing to trade, the spokesman said.
SmartCompany deals in news, information and resources for Australia’s entrepreneurs, small and medium business owners and business managers. Its article on Round the World Experts Pty Ltd and RTWexperts Pty Ltd can be found here: http://www.smartcompany.com.au/finance/cashflow/69335-travel-agency-collapses-into-voluntary-administration-after-proposed-merger-fell-through/