A global tour operator with a “significant” Australian presence has succumbed to the impacts of COVID-19, with liquidators brought in for its local business.
Last week, Jonathon Keenan and Peter Krejci of BRI Ferrier were appointed liquidators of Nexus Holidays, which also traded as Vista Holidays, according to a notice on the company’s website.
“It appears that the company has been significantly impacted by the global COVID-19 pandemic, where trading has been limited due to travel restrictions,” the notice reads.
“The available financial information indicates that the company has insufficient assets available to meet its liabilities, and the directors have formed the view that it is insolvent. As such, the company is unable to deliver on previously booked holiday packages and tours.
“The liquidators are conducting an urgent review of the company’s financial position to determine the next steps and potential outcomes for customers and creditors.
“Reports will be issued during the course of the liquidation outlining the position, including whether any credit with third party providers is available.”
In the interim, Nexus Holidays customers who made payments via credit card are being encouraged to to seek a refund, if available, via chargeback with their banks.
Otherwise, customers are entitled to submit a claim for the value of their payments by completing a formal proof of debt form.
Nexus Holidays was founded in 1996 and is headquartered in China, with 17 offices worldwide serving over 70,000 customers annually.
The company claims on its website to have established a “significant” presence in Australia, having celebrated the 10th anniversary of the opening of its Sydney office in 2017.
“Our principal business activity is in the designing, developing, worldwide marketing and selling of high-quality tour programs visiting China, Northeast Asia, Southeast Asia, and the Indian subcontinent, as well as Europe and North America,” the Nexus Holidays website says.
Nexus Holidays had its ATAS accreditation cancelled on 28 April 2020 for breaching clause 2.5 (d) of the ATAS Charter, which requires participants to be “fit and proper”.
Speaking to Travel Weekly, Keenan of BRI Ferrier said that while it’s still very early, the outcome for creditors isn’t looking good.
“We’re only just starting though, so it’s a long way to go,” he said.
“The first report to creditors will go out by the end of this week.”
Keenan noted there will be implications for Nexus Holiday’s other offices overseas “because the Australian one seems to have been funding, in large part, the other operations”.
Featured image source: iStock/designer491
