A company connected to a former travel agency which owed customers almost £600,000 in refunds when it went into liquidation has been shut down.
London-based Felix Holidays Group Limited was wound up at the High Court last Thursday (November 28).
Felix Holidays Group’s directors claimed it had not been trading since it was set up in April 2020, according to a statement from the Insolvency Service.
“However, the company told American Express its annual turnover was £1.8 million and no trading records were produced to explain how it could make payments on behalf of its sister company, Felix Travels and Tours Limited,” the statement continued.
“Investigators found that more than £200,000 was spent using two American Express cards for payments to airlines and hotel booking agencies as well as the purchase of high-value designer goods such as luxury watches.”
Felix Travels and Tours, which traded under the banner of Felix Holidays, was wound up earlier this year following investigations into both companies by the Insolvency Service.
More: Agency shut down with holidaymakers owed almost £600,000 in refunds
The company was shut down after almost 300 holidaymakers did not receive everything they had paid for in their package.
A “significant number” of customers were left entirely out of pocket, having paid upfront for their holidays, added the statement.
Cheryl Lambert, assistant director of operations at the Insolvency Service, said: “Our investigations into Felix Holidays Group found two Amex cards were being used for the payment of luxury and high-value goods which the company chose not to explain to us.
“The company failed to explain why it appeared to be making payments on behalf of Felix Travels and Tours, which was shut down for cancelling holidays at short notice and not providing customers with the services they paid for.
“Around a quarter of Felix Travels and Tours’ total customers are owed refunds of almost £600,000 which is clearly unacceptable and why we felt it necessary to take decisive action against both companies.”
One of Felix Holidays Group’s directors told the Insolvency Service that the company was set up with the purpose of obtaining an Air Travel Organiser’s Licence.
Felix Holidays Group never obtained such a licence and the director claimed that “no business activities, financial transactions, or commercial operations” had taken place under its name.
Insolvency Service said this account was “undermined” during the course of its investigations when officials established that the company held two American Express cards.
More than £200,000 was spent by Felix Holiday Group’s two directors using the cards, including payments to Felix Travels and Tours’ suppliers.
The company has outstanding balances of £81,512 across both cards with no apparent way to repay the money.
Felix Holidays Group also claimed in applying for its American Express cards that its turnover was as high as £1.8 million, contradicting claims it made that the company was dormant or non-operational.
Both directors failed to fully co-operate with the Insolvency Service’s investigation or produce accounting records on request.
Felix Holidays Group also failed to file its accounts on time and has no presence at its registered office address on Old Gloucester Street in London.
The Official Receiver has been appointed as liquidator of the company. All enquiries concerning the affairs of Felix Holidays Group should be made to: The Official Receiver of the Public Interest Unit: 16th Floor, 1 Westfield Avenue, Stratford, London, E20 1HZ, or emailing: piu.or@insolvency.gov.uk.