Package holiday specialist nosedives into administration

David Baxendale and Steven Sherry, partners at PwC, have been appointed as joint administrators of Fleetway Travel Ltd and Fleetway Aviation Ltd, package holiday specialists which have collapsed as a result of the coronavirus crisis with the loss of some 60 jobs

Fleetway has operated for 45 years, with operations in London and Sheffield, and employs around 62 staff. 

The companies have experienced cash flow pressures due to the impact of Covid-19. As a result of the worldwide travel bans, Fleetway has seen an almost complete cessation in new bookings and suffered cancellations across all destinations.

Funding options for the business have been pursued by management but could not be concluded. As a consequence, the companies have been placed into administration, with the immediate redundancy of 49 employees, whilst the remaining employees will be retained to support the closing down of the business. 

Stuart Jackson, Fleetway CEO, said: ‘It is with immense sadness that, despite our best efforts, we have been unable to overcome the tremendous hurdles placed in front of us.

‘We have worked tirelessly to find solutions to save the company and jobs for our loyal employees that have served our 60,000 customers annually.

‘However, it is immensely disappointing that the required funding or investment could not be secured to get us through this unprecedented crisis and save Fleetway Travel.’

David Baxendale, joint administrator and PwC partner, said: ‘The Covid-19 crisis has put severe pressure on the travel sector and despite efforts to restructure the company it has not been possible for Fleetway to raise the funding required to secure the future of the business. 

‘We will be working closely with the ATOL and ABTA to ensure that the disruption for customers is minimised and we will support employees affected as much as we can during this difficult time.’

By Pat Sweet

Pat Sweet |Reporter, Accountancy Daily [2010-2021]

Pat Sweet was the former online reporter at Accountancy Daily and contributor to the monthly Accountancy magazine, pub...

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