Updated: 18th July 2016
The Lowcost Travelgroup has been entered into administration and ceased trading, with 120 people losing their jobs as a result.
Recent financial market turbulence associated with Britain’s referendum on its membership of the European Union has been blamed in part for bringing about the travel group’s demise.
“The group experienced significant market headwinds in the run up to the EU referendum as holidaymakers delayed decisions,” said one of the administrators appointed recently to manage the travel group’s affairs.
“This was compounded by the Leave vote itself and the subsequent fall in value of the pound.”
As it entered administration and ceased trading on July 15th, the Lowcost Travelgroup had as many as 27,000 customers located in hundreds of holiday destinations and more than 100,000 advanced bookings in place.
Representatives of the group said that directors had made “exhaustive” attempts to save the business and its various subsidiaries in the face of serious financial difficulties.
“Regrettably, in these extraordinary conditions, the directors had no option but to place Lowcost Travelgroup Limited into administration,” administrators said.
A majority of Lowcost’s customers are from the UK, with the group operating primarily from offices in Britain, Spain, Switzerland and Poland.
The Lowcost Group operated a number of different companies and brands including Lowcostaviation.com, Lowcostbeds.com and Low cost holidays Limited, all of which are now in administration.
Official statements from the group said that efforts made to rescue the business as a whole were “hampered by the recent and ongoing turbulent financial environment”.
Advice on how to reclaim amounts of money lost by customers as a result of the group’s entry into administration has been issued along with official statements on Lowcost’s financial situation and collapse.
That advice explains that some customers may be able to claim refunds relating to lost outgoings via travel insurers or from credit card companies under certain circumstances.
A statement from the group given on July 15th as administrators were called in said: “On behalf of LCTG (low cost travel group), the directors wish to profusely apologise for the inconvenience and distress that this will cause to customers.”
Creditors of the group and its companies have been informed that since LCTG is no longer trading it will not be in a position to respond to queries on any subject. With 86 offices across the UK, you’re never far away from expert and confidential advice.