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INSOL Europe’s weekly Headlines Report

UK travel company enters administration

The UK-based travel firm Malvern Group has entered administration, affecting thousands of customers. The group incorporates two popular companies – Super Break and Late Rooms – both of which have ceased trading, according to BBC News.

More than 50,000 travellers are expected to be impacted. It is understood that people who made holiday plans with Late Rooms will still have valid bookings. A statement from the travel regulator ABTA said: “If you booked directly with Late Rooms, customers are advised to contact the hotel as we understand that payments were made directly to the hotels and therefore bookings should go ahead as planned.”

While the “vast majority” of people who used Super Break will be protected by ABTA, ATOL or their credit card companies, they may face disruption. ABTA said: “These customers will either be entitled to a refund or, if they’ve booked through another travel company, they should contact them to discuss options.”

Rescue deal for ADVEO Italy called off

Despite a recent interview in which the managing director described the remaining stages of the deal as only a “formality”, the rescue for Italian subsidiary of the retailer ADVEO has been called off at the last minute. According to reports from OPI, the firm will now have to restart liquidation proceedings.

Since the start of 2019, ADVEO Italy has been in conversations with several potential buyers for its subsidiaries, including Sandton and GDN. Both companies later withdrew their offers. In June, a third, unnamed party expressed interest in investing, but this sale has now also not proceeded.

Though the reason for this development has not been revealed, it is understood that the sale of the Italian subsidiary was contingent on the separate acquisition transactions of ADVEO’s operations in France and Benelux by Sandton, which may have led to complications.

Real estate firm Airiston Helmi to begin liquidation

Yle reports that the real estate firm Airiston Helmi is set to liquidate its properties in Finland, following police investigations into allegations of money laundering. The business’ Russian owner, Pavel Melnikov, is also expected to sell many of his personal assets.

In addition to the police investigation, recent financial documents show that Airiston Helmi has been facing a decline in its revenue. The latest statements show that the company lost an estimated €345,000 in 2018. Police have seized a further €3.5 million during the investigation, an amount that will reportedly be held until 2020.

The money laundering allegations have since made it difficult for Airiston Helmi to conduct business, with many banks refusing to work with the company and its main lender closing its account. As such, liquidation was the only option, according to its lawyer.

German automotive parts manufacturer Eisenmann files for insolvency

Eisenmann, the German manufacturer of car parts, has filed for insolvency, according to Automotive News Europe. The petition was approved at Stuttgart District Court. Eisenmann is the latest of several European automotive companies to face financial trouble, with Daimler and Continental issuing profit warnings.

Challenges arose after a number of major projects initiated in 2018 were loss-making, leading to a financial deficit in 2019. Eisenmann’s spokesperson declined to state which projects in particular had impacted the business.

The company is now seeking support from strategic partners to enable it to continue trading. It is hoping to secure investment in its application technology arm, as well as its paint and assembly unit. A statement from Eisenmann indicated that multiple parties have expressed interest in possible deals, and negotiations will commence shortly to determine the future of the firm.

Ryanair announces plans to cut staff 

The Irish budget airline Ryainair is expected to cut up to 900 jobs, according to Personnel Today, after facing a “challenging summer”. Ryanair has experienced several difficulties in recent months, including the grounding of its Boeing 737 MAX fleet due to safety concerns about the model – resulting in fewer flights being scheduled for next year.

A statement from Ryanair CEO Michael O’Leary also expressed worries about the “increasing likelihood of a no-deal Brexit in just 12 weeks’ time.”

He continued to say that, consequently, “this means we need to cut our aircraft numbers and our staffing, not just for summer 2020 but also in winter 2019. This will result in some base cuts, some base closures, and I’m very sorry to say, some job losses this winter for pilots and cabin crew, at the end of our summer schedule in September and October, and also some immediately after Christmas.”