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Doubt hangs over STA Travel as parent company files for insolvency
The future of STA Travel is under threat after the agency’s parent company filed for insolvency.
In a statement issued by Switzerland-based STA Travel Holdings, the firm said it had no option but to appoint an external administrator who will ‘determine the next steps’.
It is unclear what that means for STA’s 200 shops – of which 52 are in the UK – although the statement said local operations around the world ‘may continue’.
More information was being sought from the UK operation about the ramifications.
STA Travel has an Atol licence to carry just over 34,000 passengers.
STA parent, Diethelm Keller Group, said the company has not been immune from the ‘global magnitude of the pandemic’.
“It has brought the travel industry to a standstill, including STA Travel,” the statement said.
“Over recent months, the company took decisive measures to secure the business beyond Covid-19. 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.”
According to Diethelm Keller, STA was established in Australia in 1971 although the STA Travel website said it was formed in 1979.
By Steve Jones, Contributing Editor
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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