STA Travel owes millions to staff

CHRO South Africa 18 November 2020

Travel agency STA Travel in debt to both staff and customers.

According to Business Tech, STA Travel was placed in liquidation on 30 September following the submission of a special resolution to the Companies and Intellectual Property Commission (CIPC).

The company owes about 200 employees a total of about R2.1 million. Its liabilities total R213.5 million, while its approximately 27,000 customers are owed an estimated R91 million. Its total assets amount to R3.7 million.

On 28 October, Jurgens Steenkamp and Cheryl Jones from JJS Administrators were appointed as provisional liquidators. According to their first report, a hold has been placed on STA Travel’s accounts by the liquidators.

According to the liquidators, the next step in the liquidation process is for the Master of the High Court to convene a meeting of creditors and shareholders. This meeting will finalise the appointment of liquidators and submission of proof of claims.

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