Former Thomas Cook chief executive Manny Fontenla-Novoa has bought the assets from the administrators acting for the failed On Holiday Group Accommodation and is to launch a new trade bed bank next week.
The new business, Magic Rooms, will launch on April 15, be registered in the UK and will be fronted by former OHG sales director Brian Young as managing director. Ex-OHG chief executive Steve Endacott will not be involved.
Fontenla-Novoa told Travel Weekly that about 15 of OHG’s staff in finance, product and back office roles would be re-employed across the old business’s two offices in Manchester and Crawley, but he stressed it would be a “slimmed down version” of the former operation.
He confirmed he had bought the computer systems, data and some of the hardware from the administrators, giving him access to “great systems, XML feeds and fantastic relationships with travel agents”.
Fontenla-Novoa said: “I do believe that there is a space in the market for a good independent B2B bed bank and also believe in Brian and his team. I also believe in the relationships that we will have with travel agents, which Brian is key to. Distribution is absolutely crucial.”
He said letters would be sent to all previous travel agent partners tomorrow (Thursday) and also to hoteliers that OHG had previously worked with, informing them of the new company.
Fontenla-Novoa confirmed he was putting all the money behind the new company but it would be Young fronting the company.
“I will be making use of my relationships that I have in the UK and overseas initially, but this is Brian’s company. I am purely an investor and my role will be very low key.”
This is Fontenla-Novoa’s first foray back into travel since he left Thomas Cook in August 2011.
Travel Weekly was unable to reach Young for a comment.