Parent company of STA Travel files for insolvency
Fri, 21 Aug 2020 | BUSINESS NEWS
The Zurich-based parent company of student and youth travel agency STA Travel, which has 52 UK stores, has filed for insolvency and appointed an external administrator. Swiss holding company STA Travel Holding AG, which is owned by Diethelm Keller Holding (DKH), said that the COVID-19 pandemic had “brought the travel industry to a standstill”.
While the administration only directly affects the Swiss business at the moment, STA Travel UK has said that its leadership team would be reviewing the UK business’ position: “Following the decision to place STA Holdings, the parent company of STA Travel, into administration each division’s country manager and leadership team is now reviewing its own position. Further information will be confirmed as soon as this is finalised.”
In a statement, STA Travel Holding AG said: "Over recent months, the company took decisive measures to secure the business beyond coronavirus. However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.”
"As a consequence, STA Travel Holding AG, is filing for insolvency. In the next few days, an external administrator will take over and determine next steps.”
"While the parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue around the world. STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances."
STA Travel UK has an ATOL license to carry over 34,000 passengers per year. According to the company’s most recent financial report, filed to the year ending December 31 2018, it generated total revenue of £62.6 million in 2018, up from £33.5 million the year before, with profit after tax of £1.037 million, up from £116,000 in 2017.
At the time, the company’s total assets were valued at £40.6 million, with total liabilities of £28.7 million leading to net assets of £11.8 million.
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