Harvey World Travel has made 80 staff redundant after administrators were forced to close 16 shops nationwide.
Staff were informed of the job losses yesterday, following news the company had gone into administration. Out of 57 shops, 25 were immediately sold to new company Vacation World. This is being run separately to Vacation Travel’s four branches, owned by Stuart Arnott, who bought Harvey World Travel from Stella Travel Services UK in April.
Of the remaining 32 shops, 16 have now closed, while buyers are being sought for the remaining 16. Administrator Tenon Recovery has three interested buyers, but admitted further closures and redundancies were possible.
Director Chris Ratten said: “We are pursuing interest from three parties in buying [the remaining] shops, but some factors are putting people off. Some of the rents are quite high and a number of the shops are in small towns, and to have a viable business you need a volume of activity. Some are either level on turnover or making a loss.
“If we can sell the shops, then we can preserve the jobs. If we cannot sell the stores we will have to look at a store closure programme.”
Some of the buyers are only interested in buying one or two shops, he admitted.
Global Travel Lounge managing director Peter Buckell has already put in a bid for two shops – his former agency in Catton and a branch in Wymondham, Norfolk.
He is also interested in pursuing a joint venture with Hays Travel to buy seven to eight shops. If successful, these shops would join Hays Travel’s Independence Group and would be branded Global Travel Lounge. Currently Global Travel Lounge is a member of the Elite Travel Group.
Buckell, who currently has two shops in the Norwich and Great Yarmouth area, said: “We have talked about expanding for a while, and have always seen economies of scale from having three or more shops. Some of the [Harvey World Travel] shops are in a pretty bad way, but I know what went wrong.”
He added there could be opportunities to recruit some of the redundant staff if the deal goes ahead.
Former Galaxy Travel boss Geoff Blagg is also understood to be interested in buying some of the shops.
Staff who have now lost their jobs will receive statutory redundancy. Travel Counsellors has contacted the administrators with a view to recruiting some of the experienced staff, added Ratten.
Meanwhile, where stores have closed, holidaymakers with existing bookings are being told to contact their tour operator direct or contact a special ABTA helpline. The ABTA helpline is for bookings made prior to May 21, when the agencies still held an ABTA licence. The number is 01243 621 500.
In some cases, where closed shops are located near to other Harvey World Travel stores, to be branded Vacation World, bookings may be transferred across.