Travelzest is in talks with a prospective buyer, believed to involve a management buy out (MBO).
The company confirmed it was in “the very early stages of discussions over a potential offer” yesterday.
Travelzest is the owner of tour operator brands Best of Morocco, Tapestry Collection, Captivating Cuba and the naturist Peng Travel and listed in London on the Alternative Investment Market (AIM). However, the core of its business is in Canada where it owns tour operator itravel2000.
Chief executive John Carroll is reported to be heading a joint bid with the Canadian family owners of tour operator Sunwing that would see the latter take 55% of Travelzest and Carroll and finance director Jack Fraser the rest.
A spokeswoman told Travel Weekly: “An MBO is one of the options that has been mooted.”
Travelzest has previously been the subject of takeover speculation involving its current largest shareholder, investment company Gartmore, Thomas Cook and – in 2008 – Tui Travel.
It is understood the company made ten staff redundant at its Cheltenham head office last week. Travelzest refused to comment on the redundancies, saying: “The business flexes.”
The company reported a £9.9 million loss in the year to October 2010 following restructuring that saw five offices brought into one at Cheltenham, where it also opened a call centre. In its most-recent trading statement, Travelzest reported summer 2011 bookings in the UK down by 18%.
Travelzest was set up in 2005 by Chris Mottershead, who left in 2009 to rejoin Tui Travel – which he previously ran in the UK – to head its Russian business.
Shares in the company rose 16% at one stage after yesterday’s announcement but were 36% down on six months ago and have lost 90% of their value since 2006.