Hamilton collapses with loss of 80 jobs

Hamilton collapses with loss of 80 jobs

Report by STEVE JONES

AN accounting blunder dating back more than five years has been blamed for the collapse of Hamilton Travel with the loss of 80 jobs.

The London-based flight consolidator folded after two rescue packages fell through at the 11th hour.

Staff were told of the company’s demise shortly after two potential buyers – both dot-com companies – pulled out.

Managing director Mark Taylor blamed the collapse on an accounting error detected only when the board sifted through the accounts itself.

“We had come through a period of tough trading only to be brought down by something that happened before the existing board was in place five years ago,” said Taylor.

He declined to reveal the extent of the blunder, describing it only as “significant”.

Sources said the mistake suggested the firm had £1 million more than it actually did. Attention will now focus on who made the mistake and why it had not been found earlier. Taylor declined to comment.

“Basically, the error misrepresented the true picture of the company. Our financial situation was wrong and this complicated our fundraising. We then decided to look for a buyer.”

Two dot-com companies entered into negotiations with Hamilton, one in the UK and the other in North America.

“We held detailed conversations with both companies and were hopeful one would come off,” said Taylor. “Unfortunately both walked away in the past couple of weeks. We then decided it was in the best interest of everyone to wind the company up.

“It is a great shame that the company – and the plans we had – will not be realised because of events that took place before we arrived.”

Hamilton’s demise comes shortly before it was due to roll out an intranet site for agents which Taylor claimed was at the cutting edge of technology.

Hamilton was the 14th largest flight specialist licensed by the Civil Aviation Authority and was authorised to sell 123,000 flights a year. Bookings already made will be honoured.

Wound up: Taylor said an accounting discrepancy was discovered by the board during an appraisal of the books