STA Travel parent company files for administration

UK subsidiary is ‘reviewing its position’

STA Travel's future is uncertain (Getty)

STA Travel is “reviewing its position” after its parent company, STA Holdings, announced it was filing for administration.

It is unclear what will happen to the travel agent, which has 52 shops across the UK, most of which are currently closed.

“Following the decision to place STA Holdings, the parent company of STA Travel, into administration each division’s Country Manager and leadership team is now reviewing its own position,” STA Travel said in a statement.

”Further information will be confirmed as soon as this is finalised.“

STA Travel Holdings, part of the Swiss Diethelm Keller Group, said its insolvency is a result of the coronavirus pandemic.

”It has brought the travel industry to a standstill, including STA Travel,“ the company said in a statement.

”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.

“As a consequence, STA Travel Holding AG, is filing for insolvency. In the next few days, an external administrator will take over and determine next steps.”

It’s unclear what options STA Travel in the UK might have, the parent company has suggested its subsidiaries may be able to keep operating.

“While the parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue around the world,” continued the statement.

“STA Travel Holding AG very much regrets to not have been able to secure the future of the business under these unprecedented circumstances.“

It comes after the UK’s largest independent travel agency chain, Hays Travel, announced it would be forced to cut nearly 900 jobs as a result of the pandemic and resulting travel restrictions.

The owners, John and Irene Hays, said the slump in business caused by the government’s sudden warning against travel to Spain, as well as the changes to the furlough scheme, left them with no choice.

“We are devastated that after all of our efforts and the huge investment we’ve made we now face losing some of our valued employees through no fault of their own,” the couple said in a statement.