Shearings gone ..!!!

The owner of Shearings, the coach holidays provider, has crashed into administration, resulting in the immediate loss of 2500 jobs and thousands of customers' holidays being cancelled.

EY, the administrator to Specialist Leisure Group (SLG), confirmed late on Friday afternoon that it had made redundant more than 2000 staff who had been furloughed under the government's job retention scheme.


The grim news adds to the fast-growing toll of job losses across the economy as the coronavirus crisis continues to wreak havoc with industries such as leisure and travel.

SLG's operations include brands such as UK Breakaways, Coast & Country Hotels, Bay Hotels, Country Living Hotels, and Wallace Arnold Travel, has ceased trading with immediate effect.

The hotel chains will not reopen following the insolvency.

In a statement, EY said it had tried to find a buyer to maintain the travel group as a going concern but that it had not been possible.

It added that "the vast majority of customers" were expected to have financial protection from one of the Confederation of Passenger Transport, Bonded Coach Holidays, ATOL or ABTA, or through their credit or debit card issuer.



Gona be some very disappointed pensioners out there ....!!!!!

Tip of the iceberg I am afraid. More will follow no doubt.

This is the big worry with people on furlough, at the moment they are being paid, (80%) but once businesses reopen and they look to the future for the business, many are likely to get dump onto the dole queue. If a business goes into administration like Shearings owners have, it's unlikely that the administrators can sell it on and keep it going for a while in the current climate.

Don't forget Rolls Royce .

https://www.ft.com/content/027ce53d-8770-48a6-ba7b-000d979033b0

An economic Armageddon is about to unfold .

Hertz car rental too. They own others brands such as Firefly etc.

simonipswich wrote:Tip of the iceberg I am afraid. More will follow no doubt.

This is the big worry with people on furlough, at the moment they are being paid, (80%) but once businesses reopen and they look to the future for the business, many are likely to get dump onto the dole queue. If a business goes into administration like Shearings owners have, it's unlikely that the administrators can sell it on and keep it going for a while in the current climate.

I think people are growing to realise the majority of those furloughed are basically unemployed but with a few months of financial support from the government.

My fear for those not furloughed but employed by SME’s is that the redundancy payments due to those furloughed will deplete or exceed what little cash reserves businesses will have left at the end of this. The business going bust simply as they don’t have the cash left to pay redundancies and be able to continue, causing all employees to lose their employment.

And in those circumstances, the government find themselves having to foot the bill for all in respect of those redundancy payments. That itself will add another huge cost to the taxpayer.

We aren’t even at the start line of corporate failures yet. The scene is going to be pretty sad after this and with US unemployment projected to reach as bad as 32%, I can foresee a great deal of civil unrest on the cards. Bad, bad times.