Shearings' parent company enter administration

[david1212]

Parent company Specialist Leisure Group (SLG), owned by Texas-based private equity firm Lone Star Funds.

SLG is owned by Lone Star, which is indeed a US Private Equity Fund:

Thanks to all who have clarified US ownership.

While the group was already financially not performing well and made a loss in 2018 I do wonder if it had been British owned any decision would have been held off until at least July? By then the government will have to decide and announce what will be permitted for UK hotels and leisure businesses for the peak season and onwards into autumn.

Given various comments that at least some of the Bay hotels needed significant investment I too think realistically now many will be snapped up and converted into apartments either for permanent residance or bought by individuals as buy-to-let. Hence a loss of capacity at resorts and trade to businesses both local and where the coach tours went to.

 

[carlberry]

Thanks to all who have clarified US ownership.

While the group was already financially not performing well and made a loss in 2018 I do wonder if it had been British owned any decision would have been held off until at least July? By then the government will have to decide and announce what will be permitted for UK hotels and leisure businesses for the peak season and onwards into autumn.

Given various comments that at least some of the Bay hotels needed significant investment I too think realistically now many will be snapped up and converted into apartments either for permanent residance or bought by individuals as buy-to-let. Hence a loss of capacity at resorts and trade to businesses both local and where the coach tours went to.

It would have made no difference. They have local management and are well aware of the prospects. Their target audience isn't suddenly going to rush back into coach tours in large numbers and, even if they did, the social distancing requirements will make them all much too expensive or heavily loss making. The hotels might have had some kind of future if they could make them appeal to car based tourists, however the restaurant/bar areas will still need investment to allow them to open this year and if they're actually leased then it's a question of who pays to make them openable. As others have said the names will be valuable in years to come.

 

[Robertj21a]

Thanks to all who have clarified US ownership.

While the group was already financially not performing well and made a loss in 2018 I do wonder if it had been British owned any decision would have been held off until at least July? By then the government will have to decide and announce what will be permitted for UK hotels and leisure businesses for the peak season and onwards into autumn.

Given various comments that at least some of the Bay hotels needed significant investment I too think realistically now many will be snapped up and converted into apartments either for permanent residance or bought by individuals as buy-to-let. Hence a loss of capacity at resorts and trade to businesses both local and where the coach tours went to.

Nothing dramatic will happen in July that would help coach holidays. It's already too late in the season to advertise, get bookings and ensure correct staffing etc etc. In any event, a coach that will probably be restricted to about 12-15 passengers is no use to anybody.

 

[Bletchleyite]

Nothing dramatic will happen in July that would help coach holidays. It's already too late in the season to advertise, get bookings and ensure correct staffing etc etc. In any event, a coach that will probably be restricted to about 12-15 passengers is no use to anybody.

Coach holidays no, but the hotels could make a comeback for a new buyer after probably lying empty for the next 6 months or so.

Morecambe (for one) is about to get a new Eden Project built, and that will increase demand.

I'm unconvinced that there's a huge pent-up demand for luxury flats, even retirement ones, in Morecambe and Blackpool.

 

[randyrippley]

Coach holidays no, but the hotels could make a comeback for a new buyer after probably lying empty for the next 6 months or so.

Morecambe (for one) is about to get a new Eden Project built, and that will increase demand.

I'm unconvinced that there's a huge pent-up demand for luxury flats, even retirement ones, in Morecambe and Blackpool.

Massive demand for retirement homes in Morecambe. Take for example the Broadway hotel, next door to the Strathmore: recently completely demolished and rebuilt as OAP flats. The Headway on the other side of the Strathmore is known to be struggling - flattening the whole block would make sense.
As for Eden, completion is at least 2023 at the earliest so several quiet years for the hotels

 

[Bletchleyite]

Massive demand for retirement homes in Morecambe. Take for example the Broadway hotel, next door to the Strathmore: recently completely demolished and rebuilt as OAP flats. The Headway on the other side of the Strathmore is known to be struggling - flattening the whole block would make sense.
As for Eden, completion is at least 2023 at the earliest so several quiet years for the hotels

Interesting. Morecambe, like Blackpool, is quite run down, it's not the retirement paradise by the sea like Lytham/St Annes might be, or the retirement paradise by the grassland that used to be the sea at Grange. Maybe it's relatively cheap? I guess good if other family live in Lancaster, but Lancaster, nice though it is, isn't exactly huge.

 

[Whiteway215]

Thanks to all who have clarified US ownership.

While the group was already financially not performing well and made a loss in 2018 I do wonder if it had been British owned any decision would have been held off until at least July? By then the government will have to decide and announce what will be permitted for UK hotels and leisure businesses for the peak season and onwards into autumn.

Given various comments that at least some of the Bay hotels needed significant investment I too think realistically now many will be snapped up and converted into apartments either for permanent residance or bought by individuals as buy-to-let. Hence a loss of capacity at resorts and trade to businesses both local and where the coach tours went to.

Very much enjoyed a holiday with Shearings at Fort William about a year ago staying at Caledonian Bay Hotel. Driver and all the staff were brilliant. Hotel building itself certainly in need of TLC though.

 

[Eyersey468]

The National Holidays fleet is starting to be repossessed by the lease company, I believe they are all going to an old airfield near Coventry to be stored until they can be sold

 

[ivanhoe]

Been on two National Holiday vacations to Italy. Great Drivers and decent hotels used throughout. Shearing and National Holidays are big brands in the Coach Holiday market and when conditions allow such holidays again, the names will be back, in my opinion. Different owners, obviously, but demand will be there when deemed safe.

 

[richw]

Been on two National Holiday vacations to Italy. Great Drivers and decent hotels used throughout. Shearing and National Holidays are big brands in the Coach Holiday market and when conditions allow such holidays again, the names will be back, in my opinion. Different owners, obviously, but demand will be there when deemed safe.

The brand name is probably quite a valuable asset for the administrators to sell on

 

[Eyersey468]

The National Holidays fleet is starting to be repossessed by the lease company, I believe they are all going to an old airfield near Coventry to be stored until they can be sold

I was passed by 5 NH coaches on the M62 earlier, all on trade plates

 

[PG]

The brand name is probably quite a valuable asset for the administrators to sell on

Even more valuable if it comes with the customer lists!

 

[David Verity]

That's if you exclude customers who have had a bad experience with Shearings over refusal to issue refunds. The name will retain a loyal following amongst some but not all. Not sure if the time will be right to reinvent a damaged brand.

 

[Flange Squeal]

Several new companies have been registered at Companies House.


Shearings Coach Holidays Ltd
Incorporated 27 May 2020
London address (also used by Lewis Coaches)
Nature of business: Other urban, suburban or metropolitan passenger land transport (not underground, metro or similar

Shearings Coach Travel Ltd
Incorporated 30 May 2020
Norwich address
Nature of business: Other service activities incidental to land transportation, not elsewhere classified

Wallace Arnold Coach Holidays Limited
Incorporated 29 May 2020
Kent address (also used by Eltham Executive Charter)
Nature of business: Operation of bus and coach passenger facilities at bus and coach stations

The director of the Wallace Arnold company is also listed as director of Caledonian Coach Travel Limited, also registered in the last few days and the same business nature.

Be interesting to see what, if anything, becomes of these seemingly linked companies, themselves having apparent links to existing operators Lewis Coaches and Eltham Executive Charter.

 

[PG]

Several new companies have been registered at Companies House

Thanks for the info - the plot thickens...

 

[richw]

That's if you exclude customers who have had a bad experience with Shearings over refusal to issue refunds. The name will retain a loyal following amongst some but not all. Not sure if the time will be right to reinvent a damaged brand.

Sadly They didn’t have the money to issue refunds with.

 

[David Verity]

Several new companies have been registered at Companies House.


Shearings Coach Holidays Ltd
Incorporated 27 May 2020
London address (also used by Lewis Coaches)
Nature of business: Other urban, suburban or metropolitan passenger land transport (not underground, metro or similar

Shearings Coach Travel Ltd
Incorporated 30 May 2020
Norwich address
Nature of business: Other service activities incidental to land transportation, not elsewhere classified

Wallace Arnold Coach Holidays Limited
Incorporated 29 May 2020
Kent address (also used by Eltham Executive Charter)
Nature of business: Operation of bus and coach passenger facilities at bus and coach stations

The director of the Wallace Arnold company is also listed as director of Caledonian Coach Travel Limited, also registered in the last few days and the same business nature.

Be interesting to see what, if anything, becomes of these seemingly linked companies, themselves having apparent links to existing operators Lewis Coaches and Eltham Executive Charter.

Several new companies have been registered at Companies House.


Shearings Coach Holidays Ltd
Incorporated 27 May 2020
London address (also used by Lewis Coaches)
Nature of business: Other urban, suburban or metropolitan passenger land transport (not underground, metro or similar

Shearings Coach Travel Ltd
Incorporated 30 May 2020
Norwich address
Nature of business: Other service activities incidental to land transportation, not elsewhere classified

Wallace Arnold Coach Holidays Limited
Incorporated 29 May 2020
Kent address (also used by Eltham Executive Charter)
Nature of business: Operation of bus and coach passenger facilities at bus and coach stations

The director of the Wallace Arnold company is also listed as director of Caledonian Coach Travel Limited, also registered in the last few days and the same business nature.

Be interesting to see what, if anything, becomes of these seemingly linked companies, themselves having apparent links to existing operators Lewis Coaches and Eltham Executive Charter.

To prevent anyone else from using the names? Wallace Arnold ring-fenced the Sheffield United Tours brand. They never used it but successfully challenged another party's attempt to register it.

 

[Titfield]

IIRC Lewis Coaches tried to use a variant of the easyBus name and brand and were challenged by the easy brand owner.

 

[S&CLER]

The Hotels belonging to coach operators such as Shearings and Alfa are normally open all year round, Alfa close for a month after new year, so would probably have looked to open as soon as possible.


Why not rescue Shearings? Well, because why enter the market now and end up paying lots of costs with no revenue? Enter it when lockdown is over and you can fully operate. With the Internet for bookings, the barrier to entry is relatively low. There is literally no point buying a bus company that has no solid operations to take over, as no other aspect of one has value - just set your own up. There will be plenty of buses to lease/buy and staff to employ, possibly even on lower wages than they were on.

The biggest barrier to entry to the holiday market is probably the ABTA bond.
[/QUOTE]

Alfa have allowed payment of balances on holidays due to depart later this year to be delayed until 2 weeks before departure date instead of the usual 6 weeks. That suggests to me that they have enough cash in reserve. Alfa's hotels are in the name of another company, Leisureplex, but I'm not sure about the precise legal relationship between them, except that both Alfa and Leisureplex are employee-owned. Having received all the money for those who elected cash refunds, I've now agreed with Alfa all the amounts due in credit notes and begun to receive a trickle of them, only 1 out of the 20 due so far being in my hands; 2 have chosen to credit them to a holiday due to go on 27 September, and that's been done internally. Credit notes can still be exchanged for cash up to 30 September and are ABTA bonded until that date. As I read the T&Cs , they cease to be bonded after that date but become financially protected again once you redeem them for a booking. They can be used for any holiday departing up to 31 December 2022. Sounds pretty generous to me.

On the other hand, I'm pessimistic about being able to go ahead with our next club holiday in Ilfracombe, which was due to leave on 26 October, as cancellations have brought the number below the 30 we need for a private coach, and we don't like sharing. Deposits were due on 25 May, and I'm holding some cheques, but will not pay in until things become clearer. I'll try to rearrange it for next Easter.

 

[Robertj21a]

The biggest barrier to entry to the holiday market is probably the ABTA bond.

Alfa have allowed payment of balances on holidays due to depart later this year to be delayed until 2 weeks before departure date instead of the usual 6 weeks. That suggests to me that they have enough cash in reserve. Alfa's hotels are in the name of another company, Leisureplex, but I'm not sure about the precise legal relationship between them, except that both Alfa and Leisureplex are employee-owned. Having received all the money for those who elected cash refunds, I've now agreed with Alfa all the amounts due in credit notes and begun to receive a trickle of them, only 1 out of the 20 due so far being in my hands; 2 have chosen to credit them to a holiday due to go on 27 September, and that's been done internally. Credit notes can still be exchanged for cash up to 30 September and are ABTA bonded until that date. As I read the T&Cs , they cease to be bonded after that date but become financially protected again once you redeem them for a booking. They can be used for any holiday departing up to 31 December 2022. Sounds pretty generous to me.

On the other hand, I'm pessimistic about being able to go ahead with our next club holiday in Ilfracombe, which was due to leave on 26 October, as cancellations have brought the number below the 30 we need for a private coach, and we don't like sharing. Deposits were due on 25 May, and I'm holding some cheques, but will not pay in until things become clearer. I'll try to rearrange it for next Easter.
[/QUOTE]

Are coach operators accepting bookings for, say, 30 passengers all together ?

 

[S&CLER]

Alfa have allowed payment of balances on holidays due to depart later this year to be delayed until 2 weeks before departure date instead of the usual 6 weeks. That suggests to me that they have enough cash in reserve. Alfa's hotels are in the name of another company, Leisureplex, but I'm not sure about the precise legal relationship between them, except that both Alfa and Leisureplex are employee-owned. Having received all the money for those who elected cash refunds, I've now agreed with Alfa all the amounts due in credit notes and begun to receive a trickle of them, only 1 out of the 20 due so far being in my hands; 2 have chosen to credit them to a holiday due to go on 27 September, and that's been done internally. Credit notes can still be exchanged for cash up to 30 September and are ABTA bonded until that date. As I read the T&Cs , they cease to be bonded after that date but become financially protected again once you redeem them for a booking. They can be used for any holiday departing up to 31 December 2022. Sounds pretty generous to me.

On the other hand, I'm pessimistic about being able to go ahead with our next club holiday in Ilfracombe, which was due to leave on 26 October, as cancellations have brought the number below the 30 we need for a private coach, and we don't like sharing. Deposits were due on 25 May, and I'm holding some cheques, but will not pay in until things become clearer. I'll try to rearrange it for next Easter.

Are coach operators accepting bookings for, say, 30 passengers all together ?
[/QUOTE]

We still don't know. I can't see how coach travel can be economic if half (or more) of the seats have to be left empty. Alfa's Mercedes coaches have 49 seats including the unpopular seat in the middle of the back row.
PS Something a bit wrong with formatting of your message? It quotes my earlier post as coming from you.

 

[MotCO]

Several new companies have been registered at Companies House.


Shearings Coach Holidays Ltd
Incorporated 27 May 2020
London address (also used by Lewis Coaches)
Nature of business: Other urban, suburban or metropolitan passenger land transport (not underground, metro or similar

Shearings Coach Travel Ltd
Incorporated 30 May 2020
Norwich address
Nature of business: Other service activities incidental to land transportation, not elsewhere classified

Wallace Arnold Coach Holidays Limited
Incorporated 29 May 2020
Kent address (also used by Eltham Executive Charter)
Nature of business: Operation of bus and coach passenger facilities at bus and coach stations

The director of the Wallace Arnold company is also listed as director of Caledonian Coach Travel Limited, also registered in the last few days and the same business nature.

Be interesting to see what, if anything, becomes of these seemingly linked companies, themselves having apparent links to existing operators Lewis Coaches and Eltham Executive Charter.

Aside from registering company names, have they also set up or reserved websites with appropriate names?

 

[Bletchleyite]

Does anyone smell a pre-pack-shaped rat?

(To be fair, absent a Chapter 11 facility in the UK, pre-pack may well be a sensible way out...)

 

[Swimbar]

Aside from registering company names, have they also set up or reserved websites with appropriate names?

Have they registered the names so that they can sell them on later at a profit?

 

[Robertj21a]

Are coach operators accepting bookings for, say, 30 passengers all together ?

We still don't know. I can't see how coach travel can be economic if half (or more) of the seats have to be left empty. Alfa's Mercedes coaches have 49 seats including the unpopular seat in the middle of the back row.
PS Something a bit wrong with formatting of your message? It quotes my earlier post as coming from you.
[/QUOTE]

The current limit suggested for large single deck buses is only 11. Even if a few more can be added for household members there seems little opportunity to make up a coach that is more than half full.

 

[richw]

We still don't know. I can't see how coach travel can be economic if half (or more) of the seats have to be left empty. Alfa's Mercedes coaches have 49 seats including the unpopular seat in the middle of the back row.
PS Something a bit wrong with formatting of your message? It quotes my earlier post as coming from you.

The current limit suggested for large single deck buses is only 11. Even if a few more can be added for household members there seems little opportunity to make up a coach that is more than half full.

One of the holiday tour companies a friend still works for is saying 12 couples, or 12 individuals. Based on alternate rows (ie row 1,3,5 on one side and 2,,4,6 and so on the other). They’ve briefed drivers passengers must be loaded from the rear of the coach first and unloaded from the front, toilet out of use, no standing up or walking down the corridor until those in front have got off!

 

[S&CLER]

I was advised today that Alfa's directors are exploring the possibility of restarting coach holidays by the end of August. I also received the outstanding 17 credit notes, so at last I can draw a line under our abortive holiday planned for April.

 

[Bletchleyite]

I suppose with coach holidays they have got another shot at it in September/October, because the market is very much retirees and so getting it into the 6 week break is fairly unimportant.

 

[richw]

I suppose with coach holidays they have got another shot at it in September/October, because the market is very much retirees and so getting it into the 6 week break is fairly unimportant.

School holidays are quiet for the blue rinse brigade coach holidays, most go June and September from my observations. Shearings was always cheapest during the school holidays for last minute couples deals

 

[carlberry]

Ledger Holidays buy the Shearings name:

Travel Weekly link