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Bed bank goes into administration
Spanish travel giant Transhotel Group, which includes the bed bank hotelplease! has gone into administration after a deal to sell the business fell through.
It is understood that it has temporarily ceased taking reservations as it tries to restructure its debt, which is believed to be around €50 million. Payments to creditors have been suspended.
President Anselmo de la Cruz announced to the company’s 600 employees at 22 offices around the world that the group has started talks with its creditors to try to renegotiate its debt.
He said that under Spanish law the hotel group has up to four months to reach an agreement. It is understood that if it fails, it will be forced into bankruptcy, but he said talks were ‘favourable’.
He added: "In these moments, our primary objective is to ensure the viability of the business, and minimise the impact of these events in the industry and ensure the rights of employees, customers, and our business travellers."
The Madrid-based company has contracts with about 50,000 hotels worldwide and sells through more than 60,000 agencies, including many in the UK.
It is estimated to owe around €30 million to hotels and its total debt is believed to stand at €50 million. Reports in the Spanish media say the company has been struggling financially for the past year.
The company, established in 1994, is understood to have suspended payments to its suppliers on Tuesday after failing to reach an agreement to sell the business to Barcelona-based Hotusa Group.
The two had been talking on and off for months, but the offer by Hotusa boss Amancio Lopez to is believed to have been refused by the family-owned business.
Earlier plans for equity fund Springwater to take over Transhotel also failed. Many managers are understood to have left the company in recent months.
Chief marketing officer Marcos Franco tweeted yesterday: "Today, one of the most bitter days of my professional life, I ask God to give me strength and clarity to continue to give my best. Come on!"
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Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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