BERLIN (AP) — German tour operator FTI said Monday that it is filing for insolvency protection from creditors, and trips that haven't yet started will be canceled or scaled back.
FTI Group, which describes itself as Europe's third-biggest tour operator, said parent company FTI Touristik GmbH, was filing an application for the opening of insolvency proceedings at a Munich court.
Since an announcement in April that a consortium of investors would come on board, “booking figures have fallen well short of expectations despite the positive news,” the company said in a statement.
“In addition, numerous suppliers have insisted on advance payment,” it added. “As a result, there was an increased need for liquidity, which could no longer be bridged until the closing of the investor process,” making the insolvency filing a legal necessity.
The operator said it is working to ensure that trips that have already started can be completed as planned, but “trips that have not yet begun will probably no longer be possible or only partially possible from Tuesday.”
A support website and hotline were set up for customers affected.
The Munich-based FTI Group has over 11,000 employees.
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