Minoan Group is in talks to offload its Stewart Travel agency and operator business to pay off debts.
Stewart Travel operates nine brands including Golf Kings, My Canada Trips and CruiseKings and runs the travel club for the Unison union. The agency and operator has been in business for more than 37 years and employs more than 250 staff.
The Glasgow-based company said a “firm and credible” offer had been received, “which may or may not result in the sale of the division”. Minoan plans to concentrate on its giant resort hotel project in Crete, which finally received planning permission in June after a decade-long battle.
In a Stock Exchange statement, Minoan said the sale of Stewart Travel would allow the management team to concentrate on Crete. However, it warned: “the disposal of the Travel & Leisure division (Stewart Travel) will also remove the company’s principal source of working capital in the short term.
“As a result, the company has adopted a stringently conservative approach to the management of its working capital and is streamlining its working capital requirements and cost base.”
To tide it over, an issue of five million Minoan shares has raised £300,000 and another 16.7 million shares are being offered at six pence per share, in the hope of raising £1 million.
Minoan said funds raised from this “will be sufficient to provide working capital until the end of the financial year ending October 30 2018,” but added: “during this period the company may seek third party finance by way of involving other parties in the Crete project”.