LateRooms and SuperBreak Employees Urged to Contact JMW Solicitors After Malvern Group Administration

Employees of the holiday companies LateRooms and SuperBreak are being encouraged to get in touch with the employment law team at JMW Solicitors following the announcement that parent company Malvern Group has gone into administration.

The companies employed 253 employees across sites in both Manchester and York, with an estimated 23,000 LateRooms clients and 19,000 SuperBreak customers potentially affected by this news.

Malvern Group has ceased trading with immediate effect due to cashflow pressures that resulted from Indian travel company Cox & Kings - which owned 49% of Malvern - defaulting on its debt repayments, making them unable to continue supporting the business.

A statement from Malvern Group said the situation has “deteriorated rapidly” since this loan default, resulting in the withdrawal of any further funding. Advisers from KPMG were initially appointed to undertake an accelerated sales process to ensure further investment, while seeking interim funding from Malvern Group’s principal bankers. However, the group’s fragile finances meant that neither goal was ultimately realised, despite interest from potential purchasers.

Tracey Pye and David Costley-Wood from KPMG have now been appointed joint administrators for the LateRooms Ltd, SuperBreak Mini-Holidays Ltd and Malvern Travel Technology Ltd brands. Only 43 employees have been retained as buyers for the business and its assets are sought, with the majority of employees being stood down during this process.

In light of this announcement, JMW Solicitors is reaching out to invite affected Malvern Group staff to contact the JMW employment law team. By doing so, they can explore their legal rights and options.

Paul Chamberlain, Head of Employment at JMW says:

“At JMW Solicitors, we have tremendous sympathy for the employees of Malvern Group and its subsidiary brands. Many will now be facing a highly distressing and uncertain future, with significant concerns about their legal rights and entitlements being properly protected during the administration process.

In cases of employers becoming insolvent there is still a duty to collectively consult the affected employees where there are more than 20 employees in one establishment. Failure to do so can result in entitlement a protective award where the employer has not done what it could have to consult, and/ or up to 8 weeks arrears of pay. Where no duty to collectively consult exists, individuals still have the right to be consulted with prior to dismissal and may have individual claims for arrears of pay and unfair dismissal.

“We have a wealth of experience in advising on employment-related matters and have previously represented employees of insolvent companies including Keeping Kids Company, JJB Sports, CityLink and GHA Coaches. As such, we are well-placed to offer sensible, reassuring and compassionate legal counsel and support to help affected staff to make the right decisions to move forward.”

If you were or are an employee of LateRooms, SuperBreak or another part of the Malvern Group, do not hesitate to get in contact with JMW’s employment law team to discuss your next steps. We are here to support you during what will inevitably be a stressful period. Contact us on 0345 872 6666 for more information.

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