All Leisure Holidays has gone bankrupt forcing to cancel 7,000 vacations and leaving behind 400 travelers stranded abroad. The company will be reimbursing more than 13,000 for the event that has happened.
According to reports, the main cause of the downfall was due to the terrorist attacks in various tourist destinations in the world and the falling currency of British pounds due to Brexit. However, This is Money UK revealed that officers of the company paid themselves £900,000 in 2015 when All Leisure Holidays just earned around £500,000.
Chairman of the company, Roger Allard said in a release release to Mirror that the turmoil in Africa and the Middle East, together with the uneasiness Brexit has to the economy worsened the already weak pounds against the dollar and the euro. He said, "Since the Arab Spring the world has become a smaller place and it was no longer possible for us to take our small ships to Egypt, Libya and North Africa, Lebanon, Syria, the Black Sea have all become difficult and even Istanbul and Turkey have now been removed from the map."
"Then we had Brexit and the weaker pound - when all our costs are in dollars, euros and other local currencies. It was impossible to keep going," Allard continued. "In the last 18 months, the pound has dropped 20% against the dollar and 14% against the euro, so it was a truly unfortunate perfect storm," he added.
A representative of the company's newly appointed administrator, Grant Thornton, told This is Money that, "Whilst I am extremely pleased to have concluded a sale of the business which safeguards the holidays and bookings for over 13,500 tours passengers and preserves 200 jobs, I am very disappointed that we have no alternative other than to close the remaining All Leisure Holidays' operations."
Starting from 2014, net sales were slow and the company's other brands have been sold Canadian business G Adventures, enough to save and refund the booked passengers.
This article is copyrighted by Travelers Today, the travel news leader