Travelscope goes into administration after cashflow difficulties

More than 250 people are expected to lose their jobs as escorted tours specialist Travelscope Holidays was placed into adminstration.

The Gloucester-based company, which ran worldwide tours plus ocean and river cruise programmes, has ceased taking bookings.

Up to 40,000 people booked with the company are reported to be affected, with more than 850 due to travel on Christmas trips today and more than 1,800 tomorrow (Sunday) having their plans cancelled.

Paul Clark, Phil Duffy and Andrew Stoneman of Menzies Corporate Restructuring were appointed joint administrators.

A Menzies statement said: “The most recent annual turnover for the business was £80 million and it employs 270 staff who are predominantly based at the company’s Gloucester offices.

The company has been experiencing recent cashflow difficulties and whilst it endeavours to seek options for refinancing, it has been placed into administration in order to best protect the company’s customers and creditors.

“All customers who have pre-booked holidays through Travelscope Holidays Ltd will be entitled to full refunds through the company’s relationships with ATOL and ABTA.

“For customers already on a Travelscope Holiday, they will receive similar protection meaning that ATOL will cover all the things included in their package for the remainder of their holiday, ensuring they come home as originally planned.

“All trading activities have been suspended and no further holiday bookings are being taken.

“Please note that both the company’s and the administrator’s phone lines are extremely busy at this time and therefore we would ask you to be patient.”

The administrators referred inquiries to the company’s website for further updates at http://www.travelscope.co.uk/.

But is it known that staff have been told that they have lost their jobs – just three days before Christmas.

The company reportedly blamed a cancelled cruise for its financial difficulties.

Travelscope is a member of ABTA and holds an ATOL licence with the Civil Aviation Authority and is also a member of the Passenger Shipping Association. It has been operating for 15 years.

ABTA said it had ensured that those passengers already on board the cruise ship, MV Van Gogh, currently due to arrive at Falmouth on January 4, will be able to continue with their holidays as they are covered by the association’s financial protection scheme.

The operator’s ocean cruise programme for 2008 was based on the chartered ship Van Gogh operating sailings from Falmouth, Harwich and Hull.

by Phil Davies