MYTRAVEL has
issued a memo to shop staff reassuring them their jobs are safe as fears
continue over the group’s fate.
The news comes a
week before MyTravel’s full-year results and an expected statement to the City
as to what direction the operator will take in light of its financial troubles.
The memo also
coincided with unofficial news MyTravel had taken payment for two-thirds of its
deposits by last Friday’s deadline.
The decision to
write directly to MyTravel staff is thought to have been prompted by fears over
job security following continued speculation over the group’s future.
The leaked
document reads: “We do not foresee any reduction whatsoever in the number of
our sales staff in the UK. We regard our frontline selling staff as the most
important people in our organisation and you make a massive contribution to our
success. Your performance in all our distribution channels, since the start of
August right up to yesterday’s bookings, has been absolutely terrific and we
cannot thank you enough.”
The news came as
John Boyle expressed an interest in buying back Direct Holidays, which he sold
to MyTravel for £80.7 million in 1998.
However, it is
unlikely the company would be sold as it is profitable.
An analyst added:
“Direct Holidays is so interwoven with Airtours it would be virtually
impossible to separate it out. Plus, why sell it if it’s profitable?”
Speculation is
also rife that MyTravel’s banks were looking to appoint their own accountants
to double check its books. One analyst said: “In this sort of situation it
would not be unusual for the banks to appoint their own experts to look into
the situation.”
PricewaterhouseCoopers
and KPMG both denied any involvement.
Meanwhile, Thomas
Cook confirmed its credit insurer Euler had withdrawn cover for payments owed
by MyTravel to Thomas Cook for sales made through its Going Places and
Travelworld network.
This has forced
MyTravel to settle debts of tens of thousands of pounds with Thomas Cook on a
daily basis, although this will have less impact as November and December are
quiet for bookings.
First Choice said
it is reviewing the situation, despite speculation it has made its payment
dates more frequent.
The Financial
Services Authority confirmed it is monitoring MyTravel and will consider if
investors were kept fully informed of the company’s finances. A spokesman said:
“We’re not interested in accounting irregularities or black holes. We just look
at what they disclosed to investors.”