Administrators continue investigation into failed luxury operator

The administrators of failed luxury tour operator Luxtripper continue to investigate the affairs of the company prior to administration, according to their latest report.

Luxtripper failed in October 2023 a month after its Atol was renewed, when joint administrators Chris Farrington and Simon Jagger of Care of Restructuring and Recovery Service (Rrs) S&W Partners noted the company lacked the cash to pay staff salaries.

Yet the Civil Aviation Authority (CAA) had renewed Luxtripper’s Atol in September 2023 based on accounts showing a near £1.1 million profit for the 12 months to March, helped by £3.6 million in ‘intangible assets which were subsequently sold for £115,000.

The administration was extended for a year last October.

The administrators’ report to April 26 states: “There are a number of matters into which further investigations are being conducted.”

A creditor, understood to be the CAA, has “provided to cover specific costs associated with these ongoing matters”.

Luxtripper provided an Atol bond for £458,475. It failed owing consumers £5 million and with total debts to unsecured creditors of more than £8.23 million, of which £2.7 million was owed to trade creditors.

The administrators have made clear there are no assets to make even a partial pay out to creditors.