Tweed travel agency goes bust
A TWEED Heads travel agency has likely become the latest victim of COVID-19 - falling into liquidation owing $155,000.
The directors of D P & C Ryan Pty Ltd, which traded as Global Travel & Cruise and was part of the Helloworld Travel group, made the decision to undertake a creditors' voluntary winding up of the company on July 15.
The directors are Rebecca and Jason Collins of Nerang and Dallas and Cecile Ryan of Bogangar. The travel agency's office was located on level two of Mantra Twin Towns in Tweed Heads.
One day after the resolution ASX-listed Helloworld tapped investors for $50 million to deal with the coronavirus fallout on the business.
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It revealed in an investor presentation that 5 per cent of its 2500 franchisees, or 125, had elected to close following international and domestic travel restrictions.
Scott Howell, senior manager at The Insolvency Experts, which has been appointed to D P & C Ryan, said the liquidation was still in its early stages with the next report due in three months.
He said he was not aware of any funds in the company bank accounts, however the directors had put aside $6500 for the liquidation.
Mr Howell said COVID-19 was the most likely explanation for the collapse.
"The question is: How much did COVID impact?
"For some businesses COVID is it. Other businesses are finding COVID was the nail in the coffin.
"There is no doubt it would have had a monumental impact on any travel business."
According to a report submitted on July 15 from information provided by Mr Collins, secured creditors are owed $38,785 and unsecured creditors $116,772.
The company owes more than $20,000 to the Australian Tax Office, $82,000 to Helloworld and $9000 to BBC Digital.
Mrs Collins is owed $24,338 in total as both a secured and unsecured creditor.
Originally published as Tweed travel agency goes bust