Helloworld agents wind-up

JMW Travel Pty Ltd, the company which owns and operates Helloworld Bentleigh and Helloworld Monbulk in Vic, is set to be liquidated, despite efforts by its Administrators from Mackay Goodwin to initially keep the business trading (TD 26 Feb).

A creditors meeting late last month resolved to wind up the company, after earlier discussions over a Deed of Company Arrangement (DOCA) did not come to fruition.

The Administrator held the view that the financial performance of the company had been improving following the closure of one of its offices, but had been heavily impacted by the closure of borders and suppressed travel demand through the pandemic.

When the company was placed into administration, Helloworld Travel Limited exercised its rights to terminate its franchise, however Mackay Goodwin held the view that this was not possible during the voluntary administration period.

The Administrator noted that Helloworld had advised of its willingness to “assist in the coordination of client refunds in a liquidation scenario”.

JMW Travel was estimated to owe $238,000 to secured creditors, $129,000 to unsecured creditors and $62,000 in employee entitlements.

At the date of the appointment of administrators it was also holding about $278,000 in funds on behalf of clients.