ABTA offers lifeline to cash-strapped agents

AGENTS whose business has been wrecked by the foot and mouth crisis will not have to meet ABTA’s strict membership rules this year.

In a move that could save retailers from ruin, Newman Street has agreed to turn a blind eye if agents’ cash flow fails to satisfy the association’s requirements. Many retailers in rural areas are currently struggling to meet the criteria after their business virtually dried up. Some agents have reported a fall in sales of up to 80%.

ABTA chief executive Ian Reynolds stressed the relaxation will only apply if retailers can prove their business has been damaged by the foot and mouth crisis.

It will also only apply to membership renewals, not those joining for the first time.

Reynolds said: “We will look sympathetically on agents in rural communities who have experienced a downturn in bookings because of the epidemic,” he said.

“We’ve had reports of members losing more than half their business, particularly those in Devon, Cornwall and Cumbria, and those who would struggle to meet the criteria.

“There is a likelihood some will have severe problems and we will take this into account if they breach certain financial regulations.”

Under the current financial criteria, agents must have net assets of £50,000 and working capital of £15,000.

It is unclear how lenient ABTA will be but Reynolds said each case would be taken on its merits.