– The third largest German tour operator FTI has too many debts and is now being liquidated. Most of the approximately 350,000 creditors are package holidaymakers who booked their holidays in advance. They are to get their money back.
At the beginning of the year, the financial investor Certares wanted to take over the heavily indebted travel group FTI, but the purchase failed. In June, FTI had to file for bankruptcy. Now insolvency administrator Alex Bierbach says there is “nothing to save”.
The Munich-based company already received a financial injection from the federal government during the corona pandemic, but no more money was to be given. The tour operator had to cancel all trips from July 6, as “WirtschaftsWoche” reports. Around 175,000 bookings were affected. The travel business can no longer be maintained, which also means the end for many employees.
Insolvency administrator sends out 700 terminations
Almost 700 employees will be laid off, most of them in September. According to the insolvency administration, more than 320 employees have already signed termination agreements and found a new employer. In addition, hundreds of jobs in subsidiaries have been secured by selling shares in other companies.
Around 7,500 of the total 11,000 employees work in hotels, and according to Bierbach, business is continuing as normal for them. “The hotels are therefore our most important asset and I am confident that we will soon find a solution for selling them,” the insolvency administrator told “WirtschaftsWoche”.
Package holidaymakers will receive reimbursement from the DRSF
Most of the approximately 350,000 creditors are customers who have already paid for their booked trips in advance. Package holidaymakers – according to Bierbach, 90 percent of holidaymakers – will receive their money back from the German Travel Insurance Fund (DRSF). For example, anyone who has booked an excursion in addition to their package holiday will not receive the money from the DRSF. Those affected must register their claims with the insolvency administrator.
This also applies to booked individual services. However, Bierbach asks customers to first request a refund via the DRSF or the payment service provider. Multiple simultaneous requests would block the process.
The operation is to be completely shut down by the end of the year.
