TravelSIM administration

PREPAID phone card provider TravelSIM has been placed into voluntary administration, with the company continuing to trade over the last month in hopes that it could be sold as a going concern.

Established since 2006, the business operated from rented premises in the Gold Coast suburb of Miami, and was headed by director Jamien Zimmermann.

Administrator Jason Bettles from Worrells Solvency and Forensic Accountants was appointed on 01 Jul, and has just released the formal Report to Creditors ahead of a meeting scheduled for 04 Aug.

Bettles said the move “follows a range of external pressures, with the main driver being the COVID-19 travel restrictions”.

TravelSIM offered three product lines - its own brand of prepaid SIM cards for customers to use in their own handsets while overseas; an Australia Post branded version of the same cards; and an Australian domestic mobile phone plan sold exclusively through Australia Post outlets across the country.

“Historically this time of year sees many Australians travel overseas to experience the European summer, but the enforced travel bans across the world have resulted in a significant reduction in demand for the company’s TravelSIM and Australia Post TravelSIM products, with no certainty as to when travel restrictions may be listed,” the administrator noted.

The company had previously engaged an agent to market the business for sale, but was unable to secure a suitable buyer due to complexities with various licence agreements with suppliers.

However since then Worrells has solicited further offers, and intends on finalising any potential acquisition by tomorrow.

The report notes secured debts of $1.8 million, along with unsecured creditors amounting to $1.3 million and employee entitlements worth $222,000.