 "Cox and Kings, Cox & Kings")
Cox & Kings on Tuesday cancelled European group tours at the last minute and put hundreds of employees on notice after a delay in raising funds, confirmed the troubled tour operator.
It has already defaulted on loan repayments and closed some of its overseas branches because of cash crunch. Employees have also not been paid for three months. On Monday, it asked hundreds of staff to leave, sparking protests at its Mumbai office.
Now, even customers are facing the music for its financial crisis.
Cox and Kings had marketed several group tours for October. These are popular in West Bengal where most offices and educational institutions are closed for Durga Puja holidays. The festival begins on Friday.
The tour operator said it will refund customers. “As our IATA (International Air Transport Association) licence has been revoked, our ability to trade is constrained. We are managing travel plans of our customers,” Cox and Kings said in an emailed response.
It added, “To ensure that there is no major disruption on the ground we have decided to cancel some tours and we will refund tour costs.”
Revoking of the IATA licence makes Cox & Kings unable to issue air tickets on credit. Travel Agents Federation of India’s eastern region Chairman Anil Panjabi said it will discuss the issue. “We will raise this issue with the IATA as well. After all, the customers are suffering,” he said. Cox and Kings said it was in talks with several financial and strategic investors but raising funds has taken longer than anticipated.
“We wanted to complete the process in 90 days, but it looks like it will take about 180 days,” said the tour operator in response to questions about funding. “We don’t want to prevent employees from seeking new positions. So we have put them on notice. We are also helping them find other jobs.”
Employees, however, are upset over lack of clarity. Several of them have joined other companies. Some alleged that the company had not paid the income-tax deducted from their salaries to the government. A few have taken to Twitter and other social media to express their anguish.
“I quit in September as there was no firm assurance regarding pending salaries,” said Anirudha Rane, who worked in corporate travel section of Cox and King. He did not get paid for two-and-half months and sought help from Prime Minister Narendra Modi on social media. Cox & Kings said employee liabilities will be met through proceeds from sale of assets.
In a soup
- Cox & Kings is looking for investors for various assets, but sale process is taking longer than the planned 90 days
- Last week, it signed a term sheet to sell corporate travel division to Ebix Inc
- Termination of IATA licence made servicing corporate customers difficult
- The company's Meininger hotel chain in Europe is on the block
- The firm's stock has lost almost all its value, and closed at Rs 3.65 on Tuesday
