The new owner of airport transfer firm Taxi Transfers has defended the purchase of the company’s assets following accusations the deal was structured to leave suppliers out of pocket while it continued trading.
UK taxi booking company Cabfind bought the website and forward bookings of Taxi Transfers on April 14, but said it was not liable for the company’s debts. Taxi Transfers said it would appoint liquidators on Thursday, April 21, but had still not done so as Travel Weekly went to press on Tuesday this week.
All forward bookings are being fulfilled and the seven staff from Taxi Transfers – set up as part of Freedom Direct, which failed in April 2009 – are being retained at the call centre in Newcastle.
However, overseas suppliers have been left thousands of pounds out of pocket, prompting criticism of the way the deal was agreed.
Suppliers and rival transfer companies suggested the deal was a ‘pre-pack’. These allow a struggling firm to wipe clean its debts while safeguarding the future of the company and staff. They are controversial because they typically involve selling a business to existing management or related company prior to the appointment of an administrator.
Tim Jordan, Cabfind director, said: “There is nothing more unsavoury than the same company rising like a phoenix out of the ashes. We had no previous connection to the owners.
“We have ensured customers abroad are not stranded and addressed the issues with current suppliers. We are not responsible for what’s happened in the past.”
Mark Sutton, former managing director of Taxi Transfers, has been employed by Cabfind. He said: “We are now the largest transfer company in the UK. We are striving to take on as much business as possible and want to work with more agents.”