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Holiday firm collapse hits 40,000 Holiday firm collapse hits 40,000
(about 3 hours later)
As many as 40,000 holidaymakers have been hit by the collapse of a travel company, with many Christmas and New Year trips cancelled.As many as 40,000 holidaymakers have been hit by the collapse of a travel company, with many Christmas and New Year trips cancelled.
About 10,000 people were due to travel over the festive period, and 30,000 next year, with Gloucester-based Travelscope Holidays.About 10,000 people were due to travel over the festive period, and 30,000 next year, with Gloucester-based Travelscope Holidays.
All customers will have the full cost of their cancelled holidays refunded, administrators said. All will have the full cost of their holidays refunded, administrators said.
More than 200 people are expected to lose their jobs. More than 200 people are likely to lose their jobs and the firm's boss said he "deeply regretted" what had happened.
But the firm's managing director, Richard Ford, said he had held off putting the business into administration until he had paid all the staff their December wages. Managing director Richard Ford said he had held off putting the business into administration until he had paid all the staff their December wages.
'Very busy time' 'Total responsibility'
He said: "I deeply regret the disruption caused to so many people.
"We've been trading 15 years now, we've had a very good reputation and been profitable every year and I deeply regret this happening, particularly at Christmas time and also for our own staff.
"The total responsibility for this is mine - I'm the managing director and the only shareholder of the company."
Some 854 passengers due to travel on Saturday were told they could not do so.Some 854 passengers due to travel on Saturday were told they could not do so.
Joint administrator Paul Clark, of Menzies Corporate Restructuring, said: "At least one call was made to every single one of those passengers on the numbers we had on the company's documentation.Joint administrator Paul Clark, of Menzies Corporate Restructuring, said: "At least one call was made to every single one of those passengers on the numbers we had on the company's documentation.
OTHER TRAVELSCOPE TRADING NAMES REGISTERED WITH ABTA TSI Business to Business)Travelscope SportsTravelscope SchoolsTravelscope PromotionsTravelscope HolidaysTravelscope for GroupsTravelscope Air HolidaysTravelscopeStudy the WorldRiver Cruise Collection Reader TravelReader HolidaysOcean Cruise CollectionJust FriendsTSI
"We reckon about 80% we contacted. Valiant attempts are being made to contact all these people."We reckon about 80% we contacted. Valiant attempts are being made to contact all these people.
"We've now got another 1,900 people that need to be contacted for trips for the next few days."We've now got another 1,900 people that need to be contacted for trips for the next few days.
OTHER TRAVELSCOPE TRADING NAMES REGISTERED WITH ABTA TSI Business to Business)Travelscope SportsTravelscope SchoolsTravelscope PromotionsTravelscope HolidaysTravelscope for GroupsTravelscope Air HolidaysTravelscopeStudy the WorldRiver Cruise Collection Reader TravelReader HolidaysOcean Cruise CollectionJust FriendsTSI
"This is a very, very busy time for the Travelscope business.""This is a very, very busy time for the Travelscope business."
People whose holidays have to be cancelled will receive refunds, with the Civil Aviation Authority (CAA) covering payments for air passengers, and land and sea passengers receiving refunds from the Association of British Travel Agents (Abta).People whose holidays have to be cancelled will receive refunds, with the Civil Aviation Authority (CAA) covering payments for air passengers, and land and sea passengers receiving refunds from the Association of British Travel Agents (Abta).
Mr Clark said he believed everybody on holiday at the moment had been contacted and that the CAA and Abta would cover the cost of completing those holidays.Mr Clark said he believed everybody on holiday at the moment had been contacted and that the CAA and Abta would cover the cost of completing those holidays.
More than 460 passengers who are currently on the cruise ship MV Van Gogh, which is due to return to the UK at Falmouth on 4 January, will be free to finish their holiday interrupted.More than 460 passengers who are currently on the cruise ship MV Van Gogh, which is due to return to the UK at Falmouth on 4 January, will be free to finish their holiday interrupted.
'Lonely at home''Lonely at home'
Customer June Dolphin, from Stroud, said she had been due to head out to Austria on Friday night, having paid £743 in cash for her trip.Customer June Dolphin, from Stroud, said she had been due to head out to Austria on Friday night, having paid £743 in cash for her trip.
She said: "I've had no information at all and I am gutted.She said: "I've had no information at all and I am gutted.
"We were going to have a sleigh ride on Christmas Day and a steam train ride on Boxing Day. We don't like Christmas at home, it's too lonely.""We were going to have a sleigh ride on Christmas Day and a steam train ride on Boxing Day. We don't like Christmas at home, it's too lonely."
Abta said people who had booked Travelscope holidays through a travel agent were being offered alternative trips.Abta said people who had booked Travelscope holidays through a travel agent were being offered alternative trips.
Spokeswoman Frances Tuke said: "Where possible those who have booked through a third party are being put on different trips.Spokeswoman Frances Tuke said: "Where possible those who have booked through a third party are being put on different trips.
"For example, I know that the Co-Op has rearranged for many of its customers to go on coach holidays today. They have acted very quickly.""For example, I know that the Co-Op has rearranged for many of its customers to go on coach holidays today. They have acted very quickly."
Travelscope employs 270 staff, who are mainly based at the Gloucester offices.Travelscope employs 270 staff, who are mainly based at the Gloucester offices.
The company would have run out of cash over the next few days Paul Clark, administratorThe company would have run out of cash over the next few days Paul Clark, administrator
Mr Clark said: "The staff have been absolutely fabulous. Certain of them who were not due to be working have actually come in to try to help the situation.Mr Clark said: "The staff have been absolutely fabulous. Certain of them who were not due to be working have actually come in to try to help the situation.
"You need to look at that against the backdrop that just yesterday I had to stand up in front of 250 or so people, making it clear to them that I expected the vast majority, possibly all of them, will lose their jobs.""You need to look at that against the backdrop that just yesterday I had to stand up in front of 250 or so people, making it clear to them that I expected the vast majority, possibly all of them, will lose their jobs."
He said administrators had received several expressions of interest but, given the time of year, discussions had developed slowly.He said administrators had received several expressions of interest but, given the time of year, discussions had developed slowly.
Travelscope blamed a cancelled cruise for the firm's financial problems.Travelscope blamed a cancelled cruise for the firm's financial problems.
"I'm very, very sorry," Mr Ford said."I'm very, very sorry," Mr Ford said.
"I had tried hard to speak to the administrators before about continuing the company into the New Year but we were advised this wasn't an option.""I had tried hard to speak to the administrators before about continuing the company into the New Year but we were advised this wasn't an option."
'Very sensitive time''Very sensitive time'
Mr Clark said: "The company would have run out of cash over the next few days."Mr Clark said: "The company would have run out of cash over the next few days."
He said if the administration order had not been made when it was, some people whose forthcoming holidays had been cancelled would instead have gone on their trips only to be left stranded abroad.He said if the administration order had not been made when it was, some people whose forthcoming holidays had been cancelled would instead have gone on their trips only to be left stranded abroad.
He said: "The fear, of course, particularly over this very sensitive time, is whether hotel owners or coach owners or other people who are carrying them around said 'if I am not going to be paid, you get off my coach, you get off my boat'."He said: "The fear, of course, particularly over this very sensitive time, is whether hotel owners or coach owners or other people who are carrying them around said 'if I am not going to be paid, you get off my coach, you get off my boat'."
Travelscope Holidays Limited was established 15 years ago and provides worldwide escorted tours.Travelscope Holidays Limited was established 15 years ago and provides worldwide escorted tours.
In its last accounts filed with Companies House, the firm reported a turnover of more than £75m in 2006, with a pre-tax loss of almost £2m. It owed some £20m.In its last accounts filed with Companies House, the firm reported a turnover of more than £75m in 2006, with a pre-tax loss of almost £2m. It owed some £20m.
A company spokesman said the most recent annual turnover for the business was £80m.A company spokesman said the most recent annual turnover for the business was £80m.
Abta said it represented more than 1,500 travel businesses, of which 25 to 30 tended to go out of business each year.Abta said it represented more than 1,500 travel businesses, of which 25 to 30 tended to go out of business each year.
The Abta phone number is 01243 621500The Abta phone number is 01243 621500


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