A travel company is now filing a surprising bankruptcy after abruptly cancelling all of its international flights, sources confirm.
On May 10, Air Vanuatu canceled all of its international flights (the country is too small to run domestic flights so this essentially means all of its flights) and announced that it was filing for bankruptcy protection after struggling to find the cash to do the “extended maintenance requirements” required for the four planes currently in its fleet.
The liquidators assigned to work on the bankruptcy said they would do everything possible to ensure that Air Vanuatu could continue operating and the people of Vanuatu would not be left without an airline.
The existing executive and management teams will also stay in place as liquidators work out a financial strategy for the airline going forward alongside the Vanuatu government.
“Air Vanuatu is critical to the people of the Republic of Vanuatu and a strategically important business to the nation,” Morgan Kelly, an Ernst & Young partner and one of the liquidators assigned to the bankruptcy, said in a statement.
“The outlook for the airline is positive, despite pressures on the broader industry, and we will be focused on securing the future of this strategically vital national carrier.”
But in the current moment, thousands of travelers slated to fly to or from Vanuatu were left stranded as the airline canceled all of its flights with only a few hours’ notice.
“If you are due to fly with Air Vanuatu, please DO NOT TRAVEL TO THE AIRPORT unless you have arranged an alternative flight with another airline,” Air Vanuatu’s website currently reads.
“Please note that Air Vanuatu is unfortunately not able to arrange alternative flights for passengers at this stage.”
Other airlines currently offering flights to Vanuatu include flagship Australian carrier Qantas Airways (QUBSF) , Fiji Airways, Singapore Airlines (SINGY) and Qatar Airways — all of which struggled with a rush of travelers looking to book any available seat on what are already infrequent flights to and from the island country last week.
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Also Read: Another Mall Clothing Retailer Now At High Risk of Bankruptcy
Other Economy News Today
An unexpected grocery market now files for liquidation bankruptcy after reporting a snowball of debt to its creditors.
Outfox Hospitality, parent company of Foxtrot Market and Dom’s Kitchen & Market, has filed for Chapter 7 bankruptcy protection, according to filings with the U.S. Bankruptcy Court for the District of Delaware.
The decision to file for Chapter 7 was first made during an April 23 meeting with Outfox’s board of directors, who reviewed the financial condition of the company and each of its direct and indirect subsidiaries.
According to the bankruptcy petition, Outfox has an estimated 5,000 to 10,000 creditors as well as between $10 million and $50 million in both assets and liabilities.
This bankruptcy filing comes nearly a month after Foxtrot and Dom’s unexpectedly ceased operations, and the combined company’s sudden demise has become a major talking point in the c-store and grocery industries.
Last Friday in a foreclosure sale for Foxtrot’s and Dom’s assets, Foxtrot was listed as a debtor, with JPMorgan Chase as its secured creditor.
Even though Outfox had yet to file for bankruptcy at that time, those titles indicated an official filing probably was imminent.
According to the petition, all officers of Outfox, Foxtrot and Dom’s have been “terminated and removed” from the combined company, effective immediately.Caroline Barry, Outfox’s secretary and treasurer who was at one point Foxtrot’s vice president of strategy, will serve as the company’s designated representative during its bankruptcy process.
The filing notes that all 35 Foxtrot locations and two Dom’s stores still may have perishable goods on shelves and are “in need of immediate attention.”
The Chapter 7 trustee and attorney representing Outfox did not respond by press time when asked for comment.For more news and updates like this, opt-in for push notifications.
Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
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