Abta’s termination and subsequent reinstatement of Baldwins Travel’s membership caused confusion within the trade, with an appeal against expulsion due next month.
The association confirmed termination of its membership on February 17 was for “failing to provide financial information”.
Abta’s articles of association allow no appeal in such circumstances. However, Abta reinstated the company on February 20 pending an appeal that will challenge the grounds on which Baldwins’ membership was terminated.
Lawyers for Baldwins argued it was in breach of undertakings made to Abta and the relevant article of association allows an appeal.
The agency chain had already appealed once, last autumn, against termination of its membership. That decision was revoked in light of undertakings made by Baldwins.
Two directors of the company, finance director Christopher Hatfield and chief commercial officer Dan Shaw, subsequently resigned.
Abta confirmed it had granted the request for a second appeal, noting: “Baldwins’ termination of membership is suspended from February 20 and they remain a member pending the outcome of the appeal.”
Financial protection of bookings by Abta remains in place so long as Baldwins is a member.
However, some suppliers are understood to have put the agency on stop-sell following the termination, with one senior industry source describing last week’s events as “a pantomime”.
Travel Weekly understands there is an attempt underway to sell the company. But it is unclear how a sale might proceed with ownership registered to a company in the US state of Delaware to which Baldwins was transferred in late 2023.
The transfer was the subject of a High Court ruling last year that found former director Jack Mason and two associates guilty of contempt of court for breaching freezing orders on a series of assets that included the agency. Mason and his associates acquired Baldwins in 2021.
Alan Bowen, legal advisor to the Association of Atol Companies, said: “It’s a nightmare from Baldwins’ point of view [and] must be very worrying to companies that have given them credit.”
He added “the staff have been there for years and it’s a really good company”, noting: “Customers have nothing to fear. It’s tour operators at risk.”