Lowcostholidays staff claim they were told it was just ‘business as usual’ DAYS before firm collapsed
Ex-employees say they had 'no idea' it was about to go bust
EMPLOYEES at collapsed travel firm Lowcostholidays claim senior staff had been lying to them about how well the business was doing for months - even talking about its future goals just TWO DAYS before it went under.
Ex-workers of the holiday booking company say that they were misled about the business’ viability, with staff sent on a sales conference to Manchester 48 hours before it closed on July 15.
And on June 24, the day after the UK voted to leave the EU, chief exec Paul Evans sent an internal email to staff saying that despite Brexit it was “business as usual” and they would be “continuing the excellent work going on all around the business to make us stronger and more efficient for the future”.
They say they had no idea what was about to happen until they were hauled in to a meeting with one of Evans’ deputies where they were given the bad news.
The former worker also claims that in the months leading up to the collapse, staff were given a script to read out to worried customers to reassure them about the fact the firm had had no ATOL protection since 2013.
One ex-employee told The Sun: “Senior staff were lying to us about the viability of the company less than three weeks before its collapse - contrary to Mr Evans statement to various members of the media that he had been trying to sell the business for several months and had approached 10 different companies to see if they were interested.
“We even went on a sales conference to Manchester just two days before the collapse where the future of the business was discussed - no indication of the imminent collapse was given.”
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In the script given to workers it said: “Our financial protection arrangements mean that, in the unlikely event that we become insolvent, you will either be refunded the cost of any packages which you have booked with us but which you are unable to take because of our insolvency or if you are overseas on your package holiday you will be repatriated.
“So you can book with us with peace of mind secure in the knowledge that you are fully financially protected.”
Hundreds of thousands of people had their holidays ruined or cancelled and were left out of pocket when the travel agent went bust earlier this month.
Staff claim they were also told that if customers asked what would happen if Lowcostholidays ceased trading they were to say: “The Spanish financial protection requirements should ensure that you receive a refund.”
The document even encouraged staff to imply there were advantages to booking with the company as if anything went wrong with the holiday they could go direct to the firm and save having to go through a third party.
Shockingly the former employee also revealed that so many people are now finding out their flights hadn’t been booked with budget airlines such as Ryanair and easyJet because staff were reportedly instructed not to book them until the last minute.
They said: “We were told not to put through bookings with some of the low cost carriers until the last minute because of the risk of high costs if the customer wanted to change a name or something which would then have to be borne by Lowcostholidays.
“It costs anybody £110 to change any information on a flight. It meant calling and asking customers for more money when the flights went up was prevalent.
“The customer would think for months the flight was booked but it wasn’t.
“It’s not common procedure across the industry. Other more established companies just take the risk. It wouldn’t be done if the flight was within 12-14 weeks – I’m talking about long term bookings.”
The source, who is also owed thousands by the failed firm, added: “In the middle of the summer holidays it couldn’t have come at a worse time.
“I have been with the company for years and have many repeat customers who I feel awful for, it has even happened to members of my own family.
The Sun contacted Lowcostholidays’ administrators, Finbarr O'Connell, Henry Shinners and Colin Hardman of Smith & Williamson LLP and Lane Bednash of CMB Partners UK Ltd, but they did not respond to our requests for comment.
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