New Zealand businesses owed money by STA Travel face uncertainty after the global youth travel agency filed for insolvency.
STA’s parent company, based in Switzerland, announced on its website it was ceasing trading, saying the pandemic had “brought the travel industry to a standstill”.
Tourism Holdings Ltd chief executive Grant Webster is among New Zealand operators waiting for payment for last summer’s bookings.
Between the company’s Kiwi Experience business and rental motorhome business, he says the amount owed is in the hundreds of thousands of dollars.
STA said customers with existing bookings would receive advice in coming days.
STA Travel, which originally stood for Student Travel Australia, but was later rebranded Student Travel Association, was founded in 1971, and specialises in long-haul, adventure and student travel.
The firm said: “Over recent months, the company took decisive measures to secure the business beyond Covid-19.
“However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.”
In the UK, where STA Travel has more than 50 shops, about 500 jobs are thought to be at risk as a result of the failure.
– RNZ / BBC
Published at Sat, 22 Aug 2020 04:36:40 +0000
Source: NZ firms face uncertain wait after STA Travel ceases trading