Things look to have deteriorated rapidly at Cox & Kings. Can it now raise enough money to stop itself from going out of business?
UK-based Malvern Group, which operates LateRooms.com and Super Break, has gone out of business following the withdrawal of funding from shareholder Cox & Kings.
Cox & Kings is under considerable financial pressure, having missed a number of debt repayments, and these struggles have now had a knock-on effect.
In recent weeks Malvern Group has been looking to secure new investment, but given the short time frame it was unable to succeed.
The rapid deterioration at Cox & Kings meant the withdrawal of funding, leaving management little choice but to appoint administrators.
LateRooms.com is an online booking site, while Super Break is a tour operator specializing in short-haul trips.
“This is a devastating blow for all of our wonderful employees who have invested so much time and effort into building Malvern, its brands, and trips technology platform. This is equally difficult for all our suppliers, partners, and customers who will be impacted by this news,” said Hugo Kimber, executive chairman.
Malvern Group is still inviting bids for the business and its assets but expects to appoint an administrator on Friday.
In its most recent statement to the Bombay Stock Exchange, Cox & Kings said it was “working closely with its lenders to optimize its asset base globally and bring the situation back to normal as soon as possible.”
This might mean the sale of its hostel business Meininger.
Cox & Kings sold LateRooms.com and Super Break to Malvern Group in 2016, taking a 49 percent stake at the same time. The majority shareholder is Cayman Islands-based Adiuvat Investment Fund, according to its most recent set of accounts.
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Photo credit: The Eiffel Tower. Malvern Group ran Super Break, which specialized in short trips in the UK and Europe. gckwolfe / Flickr