Wel-Travel owes $1.7m

COLLAPSED inbound operator Wel-Travel Australia (TD 02 Dec) owes its staff and suppliers over $1.7 million, according to a newly released report to creditors.

The company’s liquidator, Kim Wallman from HLB Mann Judd Insolvency WA, has issued a “summary of affairs” for the failed business, which was placed into administration by its Director, Edwin Kwan, two weeks ago.

Priority creditors include nine employees, collectively owed $175,000 in holiday pay, long service leave and superannuation.

The Australian Taxation Office is also owed about $27,000 in PAYG and BAS payments.

Key supplier creditors include AAT Kings, owed about $10,000; coach operator ATG Downunder which is owed almost $75,000; Brunel Chauffeur Drive which has a debt of $16,600; and Rottnest Express, owed $10,400.

A host of accommodation providers are also out of pocket, including Travelodge Sydney, owed $16,000; $11,000 owed to Hamilton Island Enterprises; Perth’s Hotel Ibis which is owed more than $15,000;

Ibis Melbourne Hotel and Apartments, with a debt of $16,700; and Mercure Hotel Perth, owed $15,000.

Other impacted suppliers include attractions such as Sydney Aquarium, Sydney Opera House, Sea World, Quicksilver Cruises and Phillip Island Nature Parks, as well as restaurants and cafes across the country.

Wel-Travel’s accounts detail about $208,000 it is owed by various customers, many of them Indian travel agencies and ironically including Cox & Kings Limited, which is itself now under administration.

Most of these debts have been assessed as “not realisable,” presumably because they relate to bills for future travel.

Australia and Beyond Holidays, co-founded by former Qantas Holidays CEO Simon Bernardi, has stepped in to take over all forward unpaid Wel-Travel bookings (TD 12 Dec), as well as recruiting Wel-Travel’s Lisa Hrastovec as its new Senior Executive, Sales & Marketing.