Sat, 08 Mar 2014 | ADMINISTRATION
On Holiday Group Limited (OHG) has been placed into administration, with future bookings to the value of £19 million.
The bed bank and online retailer had been in discussions with another bed bank to take over OHG’s bookings, however the talks broke down earlier this week – Thursday 6 March.
The move would have enabled a transition and smooth continuation of services for its customers and the group’s travel agency partners, OHG chief executive Steve Endacott said.
“Unfortunately, the deal floundered last night because of deliberate and inaccurate leaks to the Spanish press along with legal complexities relating to the client account,” he added.
The matter of a lost battle with HMRC over £4.5 million of disputed Toms VAT, has seen its subsidiary OHG Accommodation also pushed into administration.
Creditors to the group, mainly overseas hotels, face unpaid debts of at least £7 million.
The, as yet unidentified, administrators’ task will be to find a buyer for the business in the next few weeks, or the 65 staff face losing their jobs.
Established in 2003 by Mr Endacott, the OHG – a member of the Midcounties Co-operative consortia - included the hotel booking site Holiday Nights, Fresh Holidays, 118 Travel, PortAventura Holidays and flightandhotel.co.uk, as well as Spanish hotel booking website reserva123.com. The websites are still trading, reports say.
Affected customers will have to pay for bills in the resort and claim refunds from agents.
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