Effective as of the October 10th, Travelshop.com.au will not be taking any more bookings.
Hard-hit by the recent downturn in the travel industry, Western Australia’s Travelshop has suspended operations.
According to a report in todays ‘The West Australian’, Perth-based Travelshop is to buy Energy Equipment Australia`s (EEA) green energy project at Bunbury in a deal worth nearly $7.9 million. The project involves building a power station in Bunbury. Travelshop director Rob Nichevich said the cash component would be funded by existing cash reserves and part of the proceeds of a planned $2 million capital raising. He added that proposals from various financiers had been received about raising the estimated $35 million needed to build the power station. The EEA deal is subject to due diligence, which is expected to be completed in three weeks, and the approval of shareholders at the annual meeting in the last week of next month.
Mr Nichevich is the only existing director who will remain on the board if the transaction proceeds, with EEA managing director James Kwok, an engineer, to join the board along with at least one other EEA-nominated director.
The Travelshop name would be dropped in favour of something more appropriate but he could not yet say what the new name would be. It was only in February last year the company changed its name from Paget Mining to reflect the shift into travel. The company said it closed its travel businesses on Tuesday to conserve cash resources. “Travelshop will undertake an orderly wind-down of these businesses and there are adequate resources to ensure that all client, creditor and staff commitments are paid in full”, the group said.