Upmarket operator Luxtripper has been forced to suspend operations while it tries to secure an urgent financial rescue package.
The London-based direct-sell operator has called in restructuring firm ReSolve Advisory to ‘explore options’ including investment or a buyer.
The company’s website is still up, but a recorded message advises telephone callers the phone lines are ‘unavailable’ and asks people to email [email protected] instead.
Luxtripper was set up in 2015 by CEO Nena Chaletzos and was placed 19th in The Sunday Times 100, annual ranking of Britain’s fastest-growing private companies, this summer.
A statement issued by Luxtripper said: “Today’s announcement follows months of active fundraising attempts to assist the Company during this challenging business period.
“Management explored securing funding from a significant number of sources but unfortunately, the capital required to take the business forward has not materialised due to the current, exceptionally challenging economic environment.
“Today, we have engaged ReSolve Advisory Ltd, the leading independent restructuring specialists, to explore rapid options to seek emergency rescue capital or a sale of the business through an accelerated merger and acquisition (AMA).
“This process is designed to attempt to preserve the business as a going concern and the jobs of our employees.
“Over the past 24 hours, alongside our efforts to assist ReSolve with a rescue solution, our primary concern has always been our employees and our customers.
“Currently, all employee contracts remain in place throughout this rescue process and we have issued detailed communications to employees outlining the current situation. The Company is also separately issuing communications to suppliers and customers enquiring about the status of orders and bookings.
“Prospective rescue investors or buyers are asked to contact ReSolve immediately with offers submitted by Monday 23 October at the latest, with the aim of completing a transaction by Friday 27 October.”
Luxtripper founder and CEO Nena Chaletzos said: “We are hugely saddened that despite our best efforts, to date, we were unable to secure adequate funding to help the business during this challenging time.
“However, we remain confident that with the help of ReSolve, we can achieve a positive solution. We hope to update the market in the coming weeks so I would ask all staff, customers and suppliers to remain patient while this accelerated M&A process is underway.”
In an email, seen by Travel Gossip, customers were informed on Wednesday their holiday would not be going ahead and were told Luxtripper would be in touch from next Monday ‘to advise the process for refunds’.