This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-36810558

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
Travel group goes into administration Lowcost Travel demise blamed on Brexit vote
(35 minutes later)
Lowcost Travelgroup is in administration affecting 27,000 holiday makers in resorts and 110,000 with bookings. Holiday booking company Lowcost Travelgroup has gone into administration, as uncertainty ahead of the EU referendum and the fall in the pound were blamed for its demise.
Smith & Williamson and CMB Partners UK have been appointed joint administrators to Lowcost Travelgroup. The group has 27,000 holiday makers in resorts and 110,000 more with bookings.
The group said it ceased trading on 15 July 2016, following exhaustive attempts by the group's directors to rescue the group. Administrators said Lowcost Travelgroup ceased trading on 15 July, with the loss of 120 jobs in the UK.
It said it has been "hampered by the recent and ongoing turbulent financial environment". Smith & Williamson and CMB Partners were appointed administrators after the firm's own rescue attempts failed.
Those "exhaustive" attempts had been "hampered by the recent and ongoing turbulent financial environment".
Finbarr O'Connell of Smith & Williamson said: "The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions. This was compounded by the Leave vote itself and the subsequent fall in value of the pound.
"Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcosttravelgroup Limited into administration. "
The group operated a travel agency business from headquarters in the UK and offices in Spain, Switzerland and Poland.The group operated a travel agency business from headquarters in the UK and offices in Spain, Switzerland and Poland.
Analysis: Joe Lynam, BBC Business Correspondent
The mass holidays business and especially selling hotels beds all over the world is a tough one. The margins are negligible. Often - as appears to be the case with LowCostHolidays - the cash earned for future holidays was used to pay for people that were already away.
So if there's a relatively sudden dip in confidence leading up to the Brexit referendum and then the pound plunges against the euro after the vote, that can be enough to tip the financial house of cards that some holiday companies have erected.
Tighter EU rules mean that airlines have responsibility for their customers and must get them home. Also many credit card providers include free travel insurance cover.
But the longed for trip away will not now be happening for thousands of LowCostHolidays customers.
The group mainly sold hotel accommodation through its wholesale (Lowcostbeds) and retail (Lowcostholidays) businesses.The group mainly sold hotel accommodation through its wholesale (Lowcostbeds) and retail (Lowcostholidays) businesses.
It also sold holidays to consumers in Europe and Scandinavia using technology that enabled customer to choose from a variety of flights and hotels for their chosen destination. Fly home
It also sold holidays to consumers in Europe and Scandinavia using technology that enabled customers to choose from a variety of flights and hotels for their chosen destination.
The failure will affect many customers who have purchased flights or holidays, some of whom are on holiday in resorts and some of whom have not travelled yet.The failure will affect many customers who have purchased flights or holidays, some of whom are on holiday in resorts and some of whom have not travelled yet.
A statement said that all flights involving people currently in resorts have been paid for and hence customers will be able to fly home when their holidays are over.A statement said that all flights involving people currently in resorts have been paid for and hence customers will be able to fly home when their holidays are over.
It added that, "unfortunately, as regards customers who have not travelled as yet a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for".It added that, "unfortunately, as regards customers who have not travelled as yet a small number will have problems as regards their flights not having been paid for and many will have problems as regards their hotel rooms not having been paid for".