Another leisure firm bites the dust
After news that XL Leisure Group, one of the UK's largest leisure groups, has gone into administration it seems that there are up to a dozen other companies literally on the brink of going under. When you consider that the XL Leisure issue has left up to 90,000 people stranded and unable to get home as planned, how bad can it get if another 12 companies were to go under!
The group has seemingly folded with debts which have been quoted as high as £143 million leading to not only up to 90,000 stranded but 200,000 additional holiday bookings now written off as worthless. When you hear the likes of Sir Richard Branson suggesting that the current situation is worse than that straight after '9/11' you know that things are bad as Branson is the eternal optimist. Willie Walsh of British Airways has gone one step further and suggested that as many as 30 airlines are currently on the verge of going out of business.
The problem now is that even though the price of oil has fallen of late, it is all too little too late and balance sheets have been holed below the waterline. For many there is literally no way back as rescue finance is still unavailable because of the recession and the credit crisis and consumer demand is still falling.
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