Holiday bookings site Laterooms has collapsed into insolvency after its parent company Malvern Group ran out of cash before it could secure a sale.
Last month Malvern appointed KPMG to undertake an accelerated sales process after Cox & Kings India, which owned a 49 per cent stake in Malvern, defaulted on loan repayments.
The default resulted in the withdrawal of any further funding for Malvern, the company said in a statement today.
Malvern was unable to secure interim funding from banks, therefore the company ran out of cash before a sale could be completed despite “interest from potential purchasers”.
The company said today that Laterooms, business client platform Superbreak and Malvern Travel Technology were unable to continue on a solvent basis and have ceased trading.
City A.M understands that KPMG will be appointed as administrators as soon as tomorrow. Malvern is continuing to invite bids for the business.
Hugo Kimber, Malvern executive chairman, said: “This is a devastating blow for all of our wonderful employees who have invested so much time and effort into building Malvern, its brands and trips technology platform.
“This is equally difficult for all our suppliers, partners and customers who will be impacted by this news. To be so close to delivering our goal of an integrated, dynamic and commercially successful business, that could provide significant value through its innovative products, is heart-breaking.”