B A Peters OBE

[Marmalade]

I think that a very good company can be caught out by, for example, combinations of market conditions, inflexibility in the face of changing times and complacent management - none of which need be at all criminal. Equally there are instances of company directors walking away from failed businesses smelling of roses and financially secure, leaving customers as the losers.

Can anyone say which is the case with Peters / Opal?

FYI - boats in their Ipswich yard have notices on them from Lombard Finance saying that they now own the boat as mortgagees in posession. Not sure what this adds to the debate but I saw it with my own eyes so it's not hearsay or speculation...

Simon

 

[peterb26]

Just to give some idea of the bonding needed to operate an ATOL bonded business - the absolute minimum is in the region of 10% of turnover. We started off at 15% but over the years the CAA reduced it as our balance sheet strengthened.

Our little travel agency turnover was tiny (about £1M) - but nevertheless we had 100k bonded and locked away to allow us to do this.

If you apply these ratios to Peters failure, its pretty much certain that everyone would have been fully covered at the point of failure.

Personally, I think the Peters saga will do endless damage to an industry which isnt exactly thriving at the moment. Although I doubt that there will be a legislative backlash such as there was to the various travel agents collapses many years ago.

 

[Richard10002]

[ QUOTE ]
Our little travel agency turnover was tiny (about £1M) - but nevertheless we had 100k bonded and locked away to allow us to do this.

[/ QUOTE ]

Did you have £100K of your firms' own money set aside, or did you pay a %age of this annually to someone for the bond ... was that an option?

 

[peterb26]

Richard, you can do it two ways. You can pay a percentage of turnover as "insurance". Or you can have the sum of money bonded with the bank in any way you like.

We owned our freehold premises so it was cheapest to have the bank take a charge out against the premises each year. The percentage margins in the travel industry are grim and I didnt fancy diluting that further with the insurance option.

 

[moondancer]

Re: B A Peters OBE *DELETED*

Post deleted by Robyn

 

[peterb26]

Long before it got to £35M.

 

[Clarky]

I'm sorry but I didn't see anybody kicking Angela and the other buyers and sellers or the workers who have lost their jobs and pay owed or for that matter the small businesses who have undoubtedly lost out on work completed for PO.
I doubt if the directors will be out of pocket by much and will be able to get new directorships without much trouble.

Best point in the thread, did he return his OBE or not?

 

[Mr Cassandra]

Best point in the thread, did he return his OBE or not?

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