Mon, 05 Aug 2019 | BUSINESS SALE
The Malvern Group, parent company of LateRooms and Superbreak, has been put up for sale after part-owner Cox & Kings defaulted on loan repayments.
The Indian travel specialist owns 49 per cent of shares in the Malvern Group, with the other 51 per cent owned by undisclosed private investors. However, failing to pay the debt has resulted in credit ratings agencies downgrading the company, and thus forcing shareholders to put the group up for sale.
The businesses also faced tough competition this year and its customers have clearly been less certain about their travel plans.
According to figures, the Malvern Group made a net loss of around £6.5 million last year despite taking more than 700,000 bookings. Advisors from KPMG have now been appointed to manage the ongoing sales process.
A statement from the group read: "The management team recently appointed advisors from KPMG to undertake an accelerated sales process to ensure further investment, and have engaged with our principal bankers to secure interim funding.
"Unfortunately, given the short timeframe enabled by our cash position and despite interest from potential purchasers, we have been unable to secure bank support or a sale of the business.
"As a result, Late Rooms Ltd (t/a LateRooms.com), Superbreak Mini-Holidays Ltd (t/a Super Break) and Malvern Travel Technology Limited are unable to continue on a solvent basis and have ceased trading."
In spite of this, the administrators have confirmed that they are still interested in hearing from potential buyers for the business or its assets as they seek to generate proceeds. However, they added that they fear the funds secured from any sales are unlikely to be substantial.
Commenting on the decision to seek a buyer, executive chairman of the Malvern Group Hugo Kimber said: "To be so close to delivering our goal of an integrated, dynamic and commercially successful business, that could provide significant value through its innovative products, is heart-breaking."
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