ENTERTAINMENT

STA Travel goes broke as 500 employees will lose their jobs as customers seek refunds


STA Travel has gone bankrupt with 500 employees who will lose their jobs after half a century of trading in the recent blow of Covid-19 on the travel industry.

The student travel agent announced on its website on Friday that it has ceased trading and will close all 50 stores, so its customers are looking for refunds.

The travel agency specializing in package tours for backpackers and young people employs around 500 people in Great Britain.

Abta, which represents tour operators and travel agents, said the news would send a "shock wave" through the tourism industry, which was already a huge hit during the coronavirus crisis.

In a statement, STA Travel UK said it had left no choice but to cease trading with immediate effect due to the impact of the coronavirus crisis.

Angry customers used social media to complain that they were chasing refunds.

STA Travel announced it collapsed today and will close all 50 stores, with travelers tracking refunds (file image)

One wrote: "So what the next flights to Oz booked with STA Travel, first Thomas Cook 2 vacation now this."

Another said, "Please can you give me some advice – STA trips still owe me thousands of pounds from a trip we couldn't take in early 2020.

"I received a refund confirmation in June, but it has not yet been returned."

Another wrote: & # 39; Shit that STA Travel is gone. We had booked flights with @VirginAtlantic for March through them, for which we have NOT yet received a refund because America has closed its borders.

"That will only make it worse getting our money back."

The agent informed 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.

& # 39; In the past few months we have taken decisive steps to secure the business beyond Covid-19.

Angry customers used social media to complain that they were chasing refunds

Angry customers used social media to complain that they were chasing refunds

"However, sales have not picked up as expected due to consumer uncertainty, further restrictions and renewed lockdowns, which are expected to continue largely through 2021."

The statement said STA Travel's Swiss parent company, STA Travel Holdings AG, filed for bankruptcy and forced the agent to cease trading with immediate effect.

'Today, based on this decision and after reviewing the UK deal, we have no choice but to stop trading with immediate effect.

"In the coming days we will work through the process and the potential impact on our business operations."

Sushi chain Wasabi has launched a restructuring plan that could close up to 12 stores after sales were hit by the coronavirus pandemic.

Sources told the PA news agency that a "handful of stores" may cease trading, potentially increasing to "as many as twelve" depending on discussions with landlords.

It is the youngest sushi retailer, following rivals Itsu and Yo! Performing a Voluntary Company Agreement (CVA) restructuring process. announced similar proposals in the past few weeks.

Sushi chain Wasabi has launched a restructuring plan that could close up to 12 stores after sales were "profoundly" impacted by the coronavirus lockdown

Sushi chain Wasabi has launched a restructuring plan that could close up to 12 stores after sales were "profoundly" impacted by the coronavirus lockdown

Wasabi, which employs more than 1,500 people and operates 51 sushi and bento shops across the UK, said the lockdown measures introduced in March had "profound effects".

The company, which sold a minority stake in investment firm Capdesia last year, said it will restructure its finances and operations and get new capital from its investors if the proposals are approved.

Will Wright and David Costley-Wood of KPMG have been nominated to advise on the restructuring.

Henry Birts, Wasabi Chief Executive Officer, said, “Prior to the pandemic outbreak, Wasabi had performed strongly due to the investments and operational improvements we made in 2019.

Rival sushi chains Itsu and Yo! announced similar proposals in the past few weeks

Rival sushi chains Itsu and Yo! announced similar proposals in the past few weeks

'However, the extraordinary impact of Covid-19 on trade has meant we need to take additional steps now to address our fixed cost base to secure the long-term future of our business.

& # 39; Over the past few weeks we have teamed up constructively with landlords to better coordinate the rents of certain locations in relation to pedestrians and retail, and we will continue to work closely with them in the coming days.

"We firmly believe that this turnaround program will provide us with a stable platform on which we can emerge from these difficult times as a healthy and sustainable company for our employees, suppliers and loyal customers."

Take-away grocers were some of the companies hardest hit by the coronavirus crisis

Take-away grocers were some of the companies hardest hit by the coronavirus crisis

Paul Berkovi, Head of Leisure Restructuring at KPMG, said, “With large numbers of workers and tourists staying at home in the city center, take-away grocers are some of the businesses hardest hit by the Covid-19 crisis.

"With the outlook uncertain, Wasabi is taking decisive steps to secure its future."

Around 11 percent of companies said their sales fell more than 50 percent during the lockdown, while 17 percent said they lost between 20 and 50 percent, figures from the National Statistics Office have shown.

Meanwhile, 32 percent said that their sales were not affected at all.

Retail is at the heart of the widespread downsizing. Marks & Spencer announced this week that 7,000 employees will be laid off in three months.

It's the latest in a range of stores to announce cuts.

Around 14,000 jobs are at risk at the struggling Debenhams department store, with plans to liquidate the store announced last week.

How more than 187,000 jobs have been lost or at risk in the coronavirus pandemic

This week, M&S became the youngest employer to cut a large number of jobs. Around 7,000 jobs are to be cut in the branches over the next three months.

This is followed by cuts made by John Lewis, a fellow seller of the sushi chain Yo! and River Island clothing store last week.

And around 14,000 jobs could be on the sidelines in the difficult Debenhams department store. Liquidation plans are drawn up in the event that other options to save the company – such as the sale – fail.

Here are the top potential job losses announced since the coronavirus was imposed on March 23:

Total: 187,719

  • August 18 – M&S – 700
  • August 17th: easyJet: 670
  • August 17th: Jet2: 102
  • August 16: Debenhams: 14,000 endangered
  • August 14 – John Lewis – 399 Endangered
  • August 14th – Yo! Sushi – 250
  • August 14 – River Island – 350
  • August 12 – NatWest – 550
  • August 11th – InterContinental Hotels – 650 worldwide
  • August 11 – Debenhams – 2,500
  • August 7 – evening standard – 115
  • August 6 – Travelex – 1,300
  • August 6 – Wetherspoons – 110 to 130
  • August 5 – M & Co – 380
  • 5 August – Arsenal FC – 55
  • August 5 – WH Smith – 1,500
  • August 4th – Dixons Carphone – 800
  • August 4 – Pizza Express – 1,100 at risk
  • August 3 – Hays Travel – up to 878
  • August 3 – DW Sports – 1,700 at risk
  • July 31 – Byron – 651
  • July 30th – Pendragon – 1,800
  • July 29 – Waterstones – unknown number of functions at headquarters
  • July 28 – Selfridges – 450
  • July 27 – Oak Furnitureland – 163 Endangered
  • July 23 – Dyson – 600 in the UK, 300 overseas
  • July 22 – Mears – less than 200
  • July 20 – Marks & Spencer – 950 Endangered
  • July 17th – Azzurri Group (owner of Zizzi and Ask Italian) – up to 1,200
  • July 16 – Genting – 1,642 endangered
  • July 16 – Burberry – 150 in the UK, 350 overseas
  • July 15 – Banks Mining – 250 Endangered
  • July 15 – Buzz Bingo – 573 Endangered
  • July 14 – Vertu – 345
  • July 14th – DFS – up to 200 endangered
  • July 9 – General Electric – 369
  • July 9 – Eurostar – unknown number
  • July 9 – boots – 4,000
  • July 9 – John Lewis – 1,300 Endangered
  • July 9 – Burger King – 1,600 endangered
  • July 7 – Reach (owns Daily Mirror and Daily Express newspapers) – 550
  • July 6 – Pret a Manger – 1,000 endangered
  • July 2 – Casual Dining Group (owns Bella Italia and Cafe Rouge) – 1,909
  • July 1 – SSP (owns Upper Crust) – 5,000 at risk
  • July 1 – Arcadia (owns TopShop) – 500
  • July 1 – Harrods – 700
  • July 1 – Virgin Money – 300
  • June 30 – Airbus – 1.700
  • June 30 – TM Lewin – 600
  • June 30th – Smiths Group – "some job losses"
  • June 25 – Royal Mail – 2,000
  • June 24th – Jet2 – 102
  • June 24th – Swissport – 4,556
  • June 24 – Crest Nicholson – 130
  • June 23 – Schuhzone – unknown number of workstations in the headquarters
  • June 19 – Aer Lingus – 500
  • June 17 – HSBC – UK jobs unknown, 35,000 worldwide
  • June 15 – Jaguar Land Rover – 1,100
  • June 15 – Travis Perkins – 2,500
  • June 12th – Le Pain Quotidien – 200
  • June 11 – Heathrow – at least 500
  • June 11 – Bombardier – 600
  • June 11 – Johnson Matthey – 2,500
  • June 11 – Centrica – 5,000
  • June 10 – Quiz – 93
  • June 10 – The restaurant group (owns Frankie and Benny & # 39; s) – 3,000
  • June 10 – Monsoon Accessorise – 545
  • June 10 – Everest Windows – 188
  • June 8 – BP – 10,000 worldwide
  • June 8 – Mulberry – 375
  • June 5 – Victoria & # 39; s Secret – 800 in danger
  • June 5 – Bentley – 1,000
  • June 4th – Aston Martin – 500
  • June 4 – Lookers – 1,500
  • May 29 – Belfast International Airport – May 45
  • May 28 – Debenhams (in the second announcement) – Hundreds of jobs
  • May 28 – EasyJet – 4,500 worldwide
  • May 26 – McLaren – 1,200
  • May 22 – Carluccio – 1,000
  • May 21 – Clarks – 900
  • May 20 – Rolls-Royce – 9,000
  • May 20 – Bovis Homes – unknown number
  • May 19 – Ovo Energy – 2,600
  • May 19 – antlers – 164
  • May 15 – JCB – 950 Endangered
  • May 13 – Tui – 8,000 worldwide
  • May 12 – Carnival UK (owns P&O Cruises and Cunard) – 450
  • May 11th – P&O Ferries – 1,100 worldwide
  • May 5 – Virgin Atlantic – 3,150
  • May 1st – Ryanair – 3,000 worldwide
  • April 30 – Oasis Warehouse – 1,800
  • April 29 – WPP – unknown number
  • April 28 – British Airways – 12,000
  • April 23 – Saffron Seats – 400
  • April 23 – Meggitt – 1,800 worldwide
  • April 21 – Cath Kidston – 900
  • April 17 – Debenhams – 422
  • March 31 – Laura Ashley – 268
  • Mar 30 – BrightHouse – 2,400 Endangered
  • March 27 – Chiquito – 1,500 endangered

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