Germany's FTI Group files for insolvency as bookings slump

3rd Jun 2024 14:32

(Sharecast News) - Europe's third-largest tour operator FTI Group said it had filed for insolvency in the Munich regional court today, as it suffered from falling bookings.

Initially, only the tour operator brand FTI Touristik is directly affected, the company said in a statement. However, it added that corresponding applications will also be filed for other group companies. Windrose Finest Travel GmbH with the luxury brand Windrose will continue to operate.

"We are currently working hard to ensure that trips that have already started can be completed as planned. Trips that have not yet begun will probably no longer be possible or only partially possible from Tuesday, 4 June 2024," FTI said.

In addition to bookings that had fallen "well short of expectations" FTI said multiple suppliers insisted on advance payments, placing a strain on liquidity which it could bridge while it looked for a fresh cash injection from a consortium of investors. The news boosted shares in German rival Tui, which were up 6% in Frankfurt.

US investor Certares in April announced that it would buy the company - which was now labouring under a €1bn debt pile - and provide an extra €125m in fresh capital, although there, this idea had reportedly been shelved.

FTI employs 11,000 people worldwide and offers tours to more than 40 destinations around the world, including through its 10,000 partner agencies in Germany.

Reporting by Frank Prenesti for Sharecast.com