Owner of coach firm Shearings collapses into administration with 2,500 jobs lost and 64,000 holidays cancelled

THE company behind coach firm Shearings, who provide holidays for over 50s, has collapsed into administration with 2,500 jobs lost.

Specialist Leisure Group (SLG) has become the latest victim of the coronavirus crisis with 64,000 holiday bookings cancelled.

But travel trade organisation Abta confirmed the vast majority were coach package holidays which are financially protected, so customers with these bookings will receive a full refund.

Administrator EY said that more than 2000 staff who had been furloughed would now be made redundant.

SLG's other businesses, UK Breakaways, Coast & Country Hotels, Bay Hotels, Country Living Hotels, and Wallace Arnold Travel, have also folded.

The firm also runs Sportingbreaks.com, which organises trips to events such as the Grand Prix at Silverstone and Wimbledon.

'VERY SAD DAY'

The business has been mauled by the coronavirus crisis, which has seen the tourist and hospitality industries shut down almost completely.

John de Vial, Abta's director of membership and financial services, said: "Today is a very sad day for these customers and the thousands of staff who will have lost their jobs.

"The fact that two such well-known brands with a loyal customer base have had to call in administrators is a stark indication of the pressure that the holiday industry is under as a result of the coronavirus pandemic.

"Abta has repeatedly highlighted to the government the urgency of the situation and the need to set out a co-ordinated strategy with clearer communication if it wants to help avoid significant job losses and support companies to weather the storm."

It's the latest hammer blow to the UK job market, with almost two million jobless Brits applying for Universal Credit since the lockdown began in March.

Another eight million workers have been put on the government's furlough scheme, with the state paying 80 per cent of their wages up to £2,500 a month.

But there are fears of further redundancies for those on Chancellor Rishi Sunak's scheme before it ends in October, with companie looking to cut costs.

More to follow...