The Swiss parent company of STA Travel has filed for insolvency but says “day to day operations may continue” at subsidiaries including the UK business.
STA Travel Holding AG is the holding company of the youth travel specialist which is owned by Diethelm Keller Holding (DKH).
Administrators are due to be appointed to determine the “next steps” for the holding company, but the firm confirmed the process applies only to the Swiss business and not to STA Travel in the UK, which has 52 stores and an Atol licence to carry more than 34,000 passengers a year.
STA Travel UK told Travel Weekly that each division’s individual leadership team is “reviewing its own position”.
In a statement, STA Travel Holding AG said: “The global magnitude of the pandemic crisis has brought the travel industry to a standstill, including STA Travel, a student and youth travel company.
“Over recent months, the company took decisive measures to secure the business beyond Covid-19. However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021. As a consequence, STA Travel Holding AG, is filing for insolvency.”
It added: “In the next few days, an external administrator will take over and determine next steps. While the parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue around the world.
“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.”
In response to Travel Weekly’s request for further clarification over the impact on STA Travel’s UK business, a spokeswoman for STA Travel Holding AG said: “It is premature to comment on implications in the UK.”
A spokeswoman for STA Travel UK cofirmed: “Following the decision to place STA Holdings, the parent company of STA Travel, into administration each division’s country manager and leadership team is now reviewing its own position.
“Further information will be confirmed as soon as this is finalised.”