(Reuters) - Malvern Group has appointed KPMG as an administrator for its travel businesses, including Super Break and LateRooms, a day after shutting them down as one of its main shareholders defaulted on debt repayments, the audit firm said on Friday.
Malvern Group is partly owned by Indian tour operator Cox & Kings Ltd (COKI.NS), which is under severe financial stress and has defaulted on debt repayments.
Malvern Group’s website said forthcoming bookings had been cancelled, while customers currently on tours may be asked to pay again by the hotels.
“Coming in the midst of the summer holidays, we understand this news will be of grave concern to 23,000 LateRooms.com and 19,000 Super Break customers who have future bookings with the Group,” joint administrator Tracey Pye said.
The number of insolvent companies in England and Wales hit its highest in more than five years in the second quarter of 2019, according to data by the Insolvency Service, that showed businesses under rising financial pressure as Brexit nears.
Cox & Kings sold LateRooms.com and Super Break to Malvern in 2016, taking a 49 percent stake in the company.
Reporting by Tanishaa Nadkar in Bengaluru; Editing by Shailesh Kuber and Anil D'Silva