A restructure of the Stella Group has turned the UK operation into a standalone business and will put paid to rumours about the group’s finances, according to UK chief executive Andrew Botterill.
Stella Travel Services UK will run the UK businesses – Travel 2, Travelbag.co.uk and Global Travel Group – as a separate unit within the Australia-based group.
Other divisions, Stella Hospitality and Stella Travel Services Australia/New Zealand, will also operate as standalone businesses. Each will have its own capital structure and board of directors in a group that remains majority owned by private-equity company CVC Asia Pacific.
A recapitalisation has left the UK business without debt after Stella sold its Harvey World Travel chain of 60 outlets in the UK in April, and saw the retailer go into administration in June.
Botterill, who took over the UK business in January, said: “The restructure makes a huge difference in terms of our balance sheet and access to liquidity, and puts to rest any unfounded speculation.”
He said the UK business had begun its new financial year in profit, adding: “We needed to run the UK business in line with the needs of the UK market.”