The non-licensable business of diving holiday company Blue O Two has been sold to Scuba Tours Worldwide Ltd via a pre-pack administration deal.
Plymouth-based Blue O Two had been forced to enter administration after challenging trading amid the pandemic.
The Civil Aviation Authority said the specialist ceased trading as trading as an Atol holder on November 15.
Regarding package holiday customers who are currently overseas, the CAA said: “It is our understanding that all elements remain valid, and your booking will proceed as planned.
“Bookings which do not include a flight element are not covered by the Atol scheme, however it is our understanding that your booking will not be affected unless you have received notification to the contrary from the company’s administrators.”
Andrew Sheridan and Simon Stibbons, partners at business advisory firm FRP, were appointed as joint administrators of Blue O2 Limited (which traded as Blue O Two) on November 15.
They immediately completed the sale of the non-licensable part of the business for an undisclosed sum to Scuba Tours Worldwide Ltd, which “helped to secure a future” for Blue O Two. The specialist has five employees including directors Nathan Tyler and Jason Strickland.
According to Companies House, Scuba Tours Worldwide Limited was set up in July 2021, and Strickland and Tyler are directors.
Blue O Two has been trading for more than 18 years but it saw travel cease during the pandemic with its two key destinations – Egypt and the Maldives – remaining on the government’s red list for extended periods.
“Subsequent changes to Atol licensing requirements resulted in the business being unable to meet its financial obligations as they fell due,” said a statement from FRP.
“Over the course of the pandemic, refunds totalling more than £3 million were made to customers.”
FRP said that the business faced closure without investment, which would have affected more than 3,000 customers.
The sale of the non-licensable part of the business helps to provide continuity for around 1,700 customers.
Most customers will be unaffected by the administration and sale, with their booking transferring to the new owners.
FRP said all other customers will be able to claim a refund for their booking through either their Atol protection or their credit card operator – or are protected by financial failure insurance.
Customers who made their booking through a travel agent or other travel company – not directly with Blue 02 Limited – will need to contact that company for advice and guidance.
Joint administrator Andrew Sheridan said: “This has been an incredibly tough time for the travel industry with even well-established businesses like Blue O Two facing significant challenges. We’re therefore delighted to have secured a sale of the non-licensable part of the business, which saved the jobs of all of the employees and protects holidays for 1,700 customers.”
Tyler, director of Blue O Two, said: “Travel is a complex regulated sector, and a lack of tailored support, along with the UK having the most stringent of travel restrictions has left it decimated.
“Before Covid, our business was a high growth success story. Despite our best efforts and determination, the financial impact of the pandemic became too great and we were forced to re-structure our business.”
Tyler and fellow director Strickland put a joint statement online from Blue 02 Limited, outlining the scale of the challenge they faced during the pandemic and “many sleepless nights”.
The statement added: “We are delighted to say that the Blue O Two brand lives on under Scuba Tours Worldwide Limited – which now trades as Blue O Two. We will continue to operate and provide scuba diving liveaboard holidays with the same devoted team of people.
“As such, we will be able to provide some existing holidays booked with Blue 02 Limited as planned, to some customers.”