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XL administrator working to sell parts of the business

XL Leisure Group administrator Kroll is working to sell off parts of the failed group’s business, but it could be almost two months before details emerge.


About 60 staff, including former MyTravel bosses Steve Barrass and Phil Aird-Mash, who were originally recruited to work on an XL restructure, have been retained in the Crawley head office to help administrators.


A Kroll spokeswoman said: “The joint administrators are considering a range of options and have received a number of expressions of interest.”


She declined to give details, but confirmed interest so far was solely in individual brands.


Proposals to creditors will not be sent out for seven weeks.


XL Leaisure Group failed with debts of £143 million and its assets appear limited to the tour operator brands, buildings on which XL held the freehold – such as the Crawley head office – and intellectual property. XL Airways’ 21 aircraft based in the UK were leased and will be returned to the leasing firms.


Brands thought to hold the most value to buyers are Florida specialist Travel City Direct, a large cash generator and direct-sell business Greece and Turkey specialist operator Kosmar accommodation-only specialist Medlife Hotels and small upmarket operator Aspire Holidays.


But industry sources fear there are few buyers in the marketplace and hoteliers owed money by XL will have lost faith in the brands.


“The problem is how badly damaged the brands are by taking them into administration. Is Kosmar damaged at a supplier level overseas? It has gone bust owing money,” said a senior source.


XL Airways’ businesses in Germany and France continue to operate after being taken over by Icelandic investment bank Straumur on the day XL’s UK business went into administration. Straumur was the principal investor in XL following a management buyout in late 2006.


XL Airways Germany has a fleet of seven aircraft and carried 200,000 passengers last year. XL Airways France operates five aircraft. Both carriers have independent management teams and insist they are profitable and financially viable.


Kroll said: “Straumur assumed ownership in France and Germany upon administration.”

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