Franchisees to oppose Traveland move

Traveland franchisees are expected to oppose the recommendation by administrators to liquidate the company at a meeting of creditors today…”They claimed insolvency and that was clearly not the case,"" Mr Fell said.

The Sydney Morning Herald
December 21, 2001

Franchisees to oppose Traveland move
Claire O'Rourke

Traveland franchisees are expected to oppose the recommendation by administrators to liquidate the company at a meeting of creditors today.

The development comes amid claims that the management of the failed travel group breached the Franchising Code of Conduct by not providing documents on its financial status.

In opposing liquidation, the store operators are attempting to prevent control of the network going to new buyers, Financial Options Group, until the $2 million sale price is paid.

A substantial payment, understood to be $1.45 million, is due to be paid out by 5pm today.

Renegade members of the franchise network, which have rescinded their Traveland contracts, could face legal action if the sale proceeds.

Spokesman for the group, John Fell of Travelplace Gympie, said 90 of the 255 franchise stores have pledged more the $100,000 to a fighting fund to defend any action, engaging Clayton Utz to represent the group.

Traveland was placed into administration for the second time in two months in November.

It is understood the Australian Competition and Consumer Commission, which administers the franchising code, has received at least 100 complaints.

Mr Fell said the code needed urgent review following the "Traveland debacle".

"They claimed insolvency and that was clearly not the case," Mr Fell said.


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