The Courier & Advertiser (Fife Edition)
Question mark over future of city travel agent
DUNDEE: STA Travel owner plans for insolvency after slow bookings rebound
The future of a Dundee travel agent is in doubt after its owner filed for insolvency.
STA Travel, which operates from a corner site opposite the DCA in Nethergate, said sales had “not picked up as anticipated”.
STA operates 52 shops in the UK and is owned by Zurich-based parent company STA Travel Holdings, which said it will appoint administrators.
Most of its flights and holidays are ATOL protected and it is a member of ABTA, the association of travel agents in the UK.
The company said: “Over recent months, the company took decisive measures to secure the business beyond coronavirus. However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lockdown 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.
“While parent company STA Travel Holding AG in Switzerland is affected, local day-to-day operations by STA Travel may continue around the world.
“STA Travel Holding AG very much regrets to not having been able to secure the future of the business under these unprecedented circumstances.”
The Dundee branch of the business is closed to passing trade, with people asked to book appointments.
The company is known as a student and youth travel specialist with a focus on gap-year trips. Globally, STA has 2,000 workers in 200 stores.
STA Travel UK said: “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.
“Further information will be confirmed as soon as this is finalised.”
It is the second potential Courier Country jobs blow in the travel sector this month. At the start of August, Hays Travel – which purchased Thomas Cook – announced 878 employees out of 4,500 could lose their jobs.