Luxtripper administration extended by a further 12 months

The administrators of Luxtripper have extended the administration by a further 12 months as they “continue investigations into the affairs of the company”.

The luxury tour operator failed in October 2023 despite its Atol being renewed only a month earlier.

Joint administrators Chris Farrington and Simon Jagger of Care of Restructuring and Recovery Service (Rrs) S&W Partners sought the extension in September and issued a progress report, made available this month, noting they have engaged law firm Squire Patton Boggs to aid in “the continuing investigations”.

More: Luxtripper claims ‘to top £11.9 million’

They reported creditor claims worth more than £8.2 million in August, noting “this is likely to increase”, although they have received no new claims since.

The administrators have previously noted that in October 2023 Luxtripper’s cash position “had deteriorated to the extent that salaries could not be paid” and that it had been “in distress” since April 2023. Yet the CAA renewed Luxtripper’s Atol in September 2023 on the basis of accounts showing a near £1.1 million profit for the 12 months to March.

This was due to £3.6 million in ‘intangible assets’ – up from £600,000 in the 2021 accounts. When these assets were independently assessed after Luxtripper ceased trading they were valued at £36,000, although they were subsequently sold for £115,000.

Affordable Luxury Travel parent Moresand acquired Luxtripper’s trademarks and domain names in June this year.

Luxtripper provided an Atol bond for £458,475 yet owes more than £5 million to consumers in addition to £2.7 million to trade creditors and £930,000 to industry lenders.

The administrators have previously warned there will be no payout to unsecured creditors.

They note there are “a number of matters” requiring “further investigations”, with a creditor – assumed to be the CAA acting on behalf of the Air Travel Trust – providing funding “to cover costs associated with these ongoing matters”.

The administrators note both “the volume of information” received from creditors and the “significant” time spent “attempting to reconcile customer bookings and references on the booking system” in their latest report.

The administration has already been extended once. Its extension into a third year contrasts with the failure of specialist agency Wonderluxe Travel, which went into voluntary liquidation in August and was dissolved this month.