STA Travel has gone bust with 500 staff set to lose their jobs after half a century of trading in the latest Covid-19 blow to the travel industry.
The student travel firm announced on their website on Friday that it had ceased trading and will closes all 50 shops, leaving its customers chasing refunds.
The travel agency, which specialises in package tours for backpackers and young people, employs around 500 people in the UK.
Abta, which represents tour operators and travel agents, said the news would send a ‘shockwave’ through the tourism industry, which has already taken a large hit during the coronavirus crisis.
In a statement, STA Travel UK said it had been left with ‘no choice’ but to cease trading with immediate effect due to the impact of the coronavirus crisis.
Furious customers took to social media to complain they had been left chasing refunds.
STA Travel announced that it had collapsed today and will close all 50 shops with travellers chasing refunds (file image)
One wrote: ‘So what next flights booked to Oz with STA travel, first Thomas Cook 2 holidays now this.’
Another said: ‘Please can you provide me with some advice – STA travel still owe me thousands of pounds from a trip we were unable to complete at the start of 2020.
‘I have received confirmation of a refund in June but this has still not been paid back.’
Another wrote: ‘Sucks that STA Travel have gone. We had flights booked through them with @VirginAtlantic for March that we STILL haven’t received a refund for because America shut its borders.
‘This is just going to make it worse to get our money back.’
The agent told customers that those with bookings would receive information in the coming days.
‘The global impact of the coronavirus pandemic has brought the travel industry to a standstill,’ the statement said.
‘Over recent months, we have taken decisive measures to secure the business beyond Covid-19.
Furious customers took to social media to complain they had been left chasing refunds
‘However, sales have not picked up as anticipated due to consumer uncertainties, further restrictions and renewed lockdown measures, which are expected to largely continue into 2021.’
The statement said STA Travel’s Swiss parent company, STA Travel Holdings AG, had filed for insolvency – forcing the agent to ‘cease trading with immediate effect’.
‘Today, as a result of that decision, and upon reviewing the UK business, we have been left with no choice but to cease trading with immediate effect.
‘Over the coming days, we will be working through the process and how it might impact our operations.’
Sushi chain Wasabi has launched a restructuring plan which could see up to 12 stores shut after sales were hit by the coronavirus pandemic.
Sources told the PA news agency that a ‘handful of stores’ could cease trading, with this potentially rising to ‘as many as twelve’ depending on conversations with landlords.
It is the latest sushi retailer to pursue a company voluntary arrangement (CVA) restructuring process after rivals Itsu and Yo! announced similar proposals in recent weeks.
Sushi chain Wasabi has launched a restructuring plan which could close up to 12 stores after its sales were ‘profoundly’ impacted by the coronavirus lockdown
Wasabi, which employs more than 1,500 and runs 51 sushi and bento shops across the UK, said it was ‘impacted profoundly’ by lockdown measures introduced in March.
The company, which sold a minority stake to investment firm Capdesia last year, said it will restructure its finances and operations, and receive fresh capital from its investors if the proposals are approved.
KPMG’s Will Wright and David Costley-Wood have been nominated to advise over the restructuring.
Henry Birts, chief executive officer of Wasabi, said: ‘Prior to the outbreak of the pandemic, Wasabi had been performing strongly on the back of the investment and operational improvements we had made during 2019.
Rival sushi chains Itsu and Yo! announced similar proposals in recent weeks
‘However, the extraordinary impact of Covid-19 on trading has meant that we now need to take additional steps to address our fixed cost-base if we are to secure the long-term future of our business.
‘In recent weeks, we have had constructive engagement with landlords regarding better alignment of the rents of certain sites in proportion with footfall and trading, and we will continue to work closely with them over the days ahead.
‘We strongly believe that this turnaround programme will provide us with a stable platform upon which we can emerge from this difficult period as a healthy and sustainable business, for our staff, suppliers and loyal customers.’
Grab-and-go food retailers have been some of those businesses most significantly affected by the coronavirus crisis
Paul Berkovi, KPMG’s head of leisure restructuring, said: ‘With large numbers of city centre workers and tourists remaining at home, grab and go food retailers have been some of those businesses most significantly affected by the Covid-19 crisis.
‘With the outlook remaining uncertain, Wasabi is taking decisive action to safeguard its future.’
Some 11 per cent of companies said their turnover decreased by more than 50 per cent during lockdown, while 17 per cent said they lost between 20 and 50 per cent, figures from the Office for National Statistics have shown.
Meanwhile, 32 per cent said their turnover was not affected at all.
The retail sector is at the heart of widespread job cuts with Marks & Spencer announcing this week that it plans to axe 7,000 staff in three months.
It is the latest in a string of high-street stores to announce cuts.
Around 14,000 jobs are at risk at struggling department store Debenhams, with plans to liquidate the business announced last week.