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Freudmann and Unpackaged directors probed

The Department for Business, Innovation & Skills (BIS), is investigating the “conduct of directors of Unpackaged Holidays”, which went into administration in March 2009.


Creditors of Unpackaged, trading as accommodation-only and transfer company Seligo, received letters last month from solicitors acting on behalf of the secretary of state for BIS, Peter Mandleson.


The opening line of the letter, seen by Travel Weekly, reads: “Dear Sirs. We act on behalf of the secretary of state for Business, Innovation & Skills and are investigating the conduct of the directors of Unpackaged Holidays, of which we understand you are a creditor.”


ITT chairman Steven Freudmann is likely to be asked to assist in BIS’s investigation, despite resigning as a director of the company in February, a month before it failed.


Insolvency rules state that anyone who has been a director of a failed company for up to three years preceding the failure date could hold relevant information.


In the letters, the solicitors ask creditors to provide them with information to assist with their enquiries.


Their questions cover topics such as accounts, finances, credit limits, payments and litigation.


The assets of Unpackaged Holidays were sold to sister firm The Travel Club of Upminster in a “pre-pack” deal.


It caused controversy because Unpackaged was, and The Travel Club still is, owned by Alpha Prospects, of which Steven is a director.


Freudmann said of the BIS investigation: “This, I understand, is pretty standard practice from the department and I’m absolutely confident the matter won’t go any further.”

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