The Travel Network Group (TTNG) paid £100,000 to buy escorted tours specialist TS Travel and its associated travel media company Tripsmiths after the businesses entered administration, it has emerged.
The two companies operated a trust account to protect customers’ payments with The Travel Trust Association (TTA), which is part of TTNG, but their account was showing a £285,000 shortfall when they went into administration.
Administrators Michael Solomons and Andrew Pear of Moorfields were appointed on 14 May and agreed a pre-pack sale to TTNG.
Tripsmiths and TS Travel, which trades as TS Tours, now operate under a new company name and business entity, Tripsmiths Travel, with all bookings protected through a franchise agreement with TTA.
Tripsmiths was founded nine years ago by The Telegraph former Executive Head of Travel Charles Starmer-Smith, who is one of the directors of the newly created TS Tours, alongside TTNG Chief Executive Gary Lewis.
Gary said: “The TTA’s trust account model is designed to provide 100% financial protection for customers through a combination of independently managed trust accounts and additional financial safeguards. While no system can completely eliminate the risk of human error or operational issues, our model is specifically designed to identify problems early and protect customers should they arise.
 “In the case of Tripsmiths, a shortfall was identified and, following discussions with the member, it was determined to have arisen from an error in the administration of their complex business operation.
“Throughout the process, our priority was to maintain the protections available to customers while working closely with the member to understand the circumstances and explore potential solutions.
“Following the decision to enter liquidation, a number of parties expressed an interest in the assets. We are delighted that our offer to invest was accepted. Tripsmiths recognised the value of remaining within The Travel Network Group, and we saw an opportunity to support a strong niche proposition while creating benefits for our wider membership.
 “We are privileged to support our members through both successful periods and more challenging circumstances.”
