TravelBrands says that the fact that it has been granted protection by the Ontario Superior Court of Justice under the Companies’ Creditors Arrangement Act (CCAA) will not hinder the future of its business. (See Press Today, May 27, 2015)
A company representative, who could not be named, told Baxter Travel Media managing editor Mike Baginski that the move was necessary to deal with some “isolated” and “legacy” issues related to the company’s purchase of Thomas Cook Canada in 2013 and that TravelBrands was absolutely not in jeopardy.
Those issues – detailed in court documents posted on the Monitor’s web site – were referred to in a general sense in a statement issued by the company yesterday – and include revenue sharing with Sears Travel and two leases (one in Toronto, the other in Montreal).
The spokesperson maintained that these issues – and the court protection order – would in no way affect TravelBrands customers or partners.
And the spokesperson also pointed out that as soon as it was granted CCAA protection by the court, the company moved quickly to issue a statement in order to “get out in front of [the issue]” because “we don’t want people to draw the wrong conclusions.”
In that statement, TravelBrands CEO Frank DeMarinis said: “Our wholesale and retail brands remain open for business and there will be absolutely no change to the service and support our customers have come to expect from us. As far as our external partners are concerned, it’s business as usual.”
DeMarinis added: “TravelBrands enters CCAA with the support of its creditors and investors. We will emerge from creditor protection financially stronger, more competitive and well-positioned for the future.”
While the TravelBrands announcement certainly had the industry buzzing, the spokesperson made it clear that for the company, “It is business as usual”
KPMG has been appointed by the Court as the monitor of the company in the proceedings and for more, including court documents, go to the monitor’s website by clicking here.