Travelzest – fails to secure funding

Travelzest latest news: Travelzest has asked for its shares to be suspended after failing to secure £2 million in fundraising. Not good news if you have booked with them, especially its now that travel companies will be feeling the pinch as funds start to dry up.

Travelzest shares are suspended
(UKPA) – 57 minutes ago

Specialist holiday firm Travelzest has been trying to fill a £2 million funding gap after its shares were suspended.

Travelzest, which has said it faces a “material risk” of insolvency without the fundraising move, is pursuing a revised placing and said it had positive discussions with lenders.

The London-based company – whose brands include Captivating Cuba and Asian operator Faraway Holidays – believes the placing is the only viable way of raising the funds needed to meet its banking terms and ensure that it has enough working capital to survive.

The operator is reported to have believed it had raised £5.7 million by issuing new shares, money needed to meet lending agreements with banks.

But when the market closed on Friday afternoon, the company said that investors accounting for £2 million missed the deadline meaning it would need to find an alternative means of securing the funds.

It was at that stage that it asked for its shares to be suspended pending clarification of its financial position.

The company hit the headlines earlier this year when founder and former chief executive Chris Mottershead was accused of misappropriation of company funds.

He left the company last month after the accusations were deemed to be unfounded.

Reports suggest Travelzest bosses are confident they will be able to make up the shortfall. They are talking to other shareholders this week.

The company is due to repay £2 million to the banks by November.

In recent years the operator has expanded with purchases of smaller operators such as Captivating Cuba, Best of Morocco and Canadian travel company Itravel2000