Trade partners seek clarity as Baldwins shops put up for sale

Trade partners and staff of Baldwins Travel remain in the dark about the fate of the Kent‑based agency after finance firm Westwood Capital Finance sent in receivers on May 7.

 

Westwood provided finance secured against the freehold of three Baldwins properties – in Tonbridge, Tunbridge Wells and Tenterden – in November 2023, holding two of seven outstanding charges against Baldwins’ assets.

 

The properties were this week put up for sale. 

 

Westwood had warned on May 1 that it would send in receivers in the event of a default, before appointing Philip Deyes of Leonard Curtis and Frazer Ulrick of Westgates Restructuring as joint receivers on May 7.

 

More: Trade rallies to support Baldwins staff after agency enters receivership

 

High Court records show Baldwins director Nick Marks separately sought a winding-up petition on May 8, suggesting the company could not pay its debts.

 

Baldwins has been in difficulty for some time. Abta terminated the company’s membership on April 1 after initially doing so in February for failing “to provide financial information” but allowing an appeal.

 

Iata suspended Baldwins’ accreditation on April 28 and the Advantage Travel Partnership confirmed Baldwins was no longer a member last week, although Marks still attended the Advantage Conference in Malta.

 

However, the difficulties extend back to September 2021 when Baldwins was acquired by Inc & Co, part of a web of companies run by Jack Mason – who became a Baldwins director – Scott Dylan and David Antrobus.

 

Baldwins had served notice of its intention to appoint an administrator in August 2021, so the deal averted that outcome.

 

But the three were subject to court proceedings brought by Barclays Bank in November 2021 in pursuit of £13.7 million in “unauthorised borrowings”.

 

Barclays subsequently obtained freezing orders prohibiting the sale or transfer of assets, including Baldwins Travel.

 

The three were each sentenced to 22 months in prison last October for breaching these orders by moving the assets first to a company in the British Virgin Islands and then to the US state of Delaware.

 

The High Court judge offered up to 12 months’ remission on the sentences if the assets, including Baldwins’ shares, were transferred back to the UK, but without response.

 

Dylan is now in prison and Mason and Antrobus abroad.

 

Four of the remaining charges entered into as security against loans are held by Rivers Leasing of Harrow, with three secured in January 2024 against the Tonbridge, Tunbridge Wells and Tenterden properties, and a fourth in December 2023 against multiple Baldwins assets.

 

A fifth charge, held by Inflow Property Investments, is secured against assets including “all freehold and leasehold property in the company”.

 

Two further outstanding charges are held by companies registered in Delaware, as is the owner of Baldwins, Worldwide Travel Holdings.

 

An industry legal source suggested other charge holders would likely “ask the receivers to repossess all property” and said: “The receivers will seek to recover lenders’ money by selling the properties.”

 

The proceedings brought by Barclays also remain in prospect, with the freezing orders obtained by Barclays potentially preventing the sale of properties.

 

Abta confirmed members could “submit pipeline claims in respect of Baldwins Travel” last week, treating the business as beyond recovery despite noting: “We’ve not been notified of a failure.”

 

One former trade partner of Baldwins Travel described staff as "worried sick about their futures" and told Travel Weekly: "Tour operators are owed multiple thousands of pounds on bookings where we have proof that clients paid Baldwins months in advance but that money was not passed on [and] clients who paid months ago have had zero contact or communication from Baldwins.

 

"This is a lesson in how not to handle things. They owe us thousands and we need to go through the convoluted Abta process with no guarantees of if or when we’ll receive our cash."