TRAVELSCENE could have been saved from collapse had a
potential buyer not pulled out at the last minute, Travel Weekly
can reveal.
Chairman and chief executive Jo Monfort said he was only
informed last week of the unnamed buyer’s decision not to go
ahead. The city-breaks operator, which lost £4 million in
revenue in its last financial year, had been on the market for a
sale and looking for investors since before Christmas.
“Several companies were seriously interested in acquiring or
investing, but they decided to pursue other options. The most
recent interested party informed us last week that they were not
going to pursue the acquisition any further. That left me with
little option but to call in the administrators.”
In the past 18 months the operator had downsized by 50% and cut
staff from 120 to 61. All remaining staff have lost their jobs,
although Monfort said companies had approached staff with job
offers.
Monfort said there was a tearful reaction when he gathered staff
together to be told.
Travelscene launched a new strategy in February 2001, after an
“excellent year”, to double the size of the business within the
next four or five years. Two new businesses were subsequently
acquired, Liverpool-based Drive Ireland and Menary Leisure, in
Belfast, but then September 11 hit. “That was a hell of a blow,”
said Monfort. He said this, along with the no-frills carriers,
accelerated the “e-marketplace” and led to the operator investing a
“considerable amount” in an online customer relationship management
system.
But a change of hands by its software company meant the launch
of Travelscene low cost (Tlc) was too late.
“It slowed down the distribution and this impacted on volume,”
said Monfort, adding that it ran out of money to promote the brand
properly. “We couldn’t downsize fast enough or cut costs
quick enough.”
Despite cutting costs by 55% in the past 18 months, “we ran out
of cash”.