Trade-only bed bank Transhotel has entered a three-month voluntary administration period as it seeks a buyer to resolve cash-flow issues.

The bed bank, based in Spain, is continuing to trade and will honour bookings. It is in the process of contacting all travel agent and supplier partners to reassure them bookings are safe and to avoid any “knee-jerk reaction” in the trade.

Under Spanish law, a company can put itself into voluntary administration for three months to get its finances back in order or prior to closing down. The company applied to the Spanish courts and was put into voluntary administration yesterday.

It is understood Transhotel, which works with agents including Advantage, Hays Travel and Worldchoice in the UK and has offices worldwide, has been looking for a buyer for some time.

A spokesperson said: “The company has not gone under. We are speaking to hotels to make sure bookings are honoured and third-party suppliers and agents will be contacted. Any agents who are concerned or have any questions should contact our sales team.”

Transhotel employs 900 people and works with 60,000 hotels and 78,200 travel agencies in the 24 countries in which it operates.