EMCC European Monitoring Centre on Change

XL Leisure

16 Jul, 2015
    • France
    • Germany
    • Ireland
    • United Kingdom
  • Organisation size

    1000+

  • Establishment size

    10-49

  • Type of restructuring
    • (Avoiding) bankruptcy
  • Ownership
    • Private
  • Involved actors

    • Works council
    • Trade union
    • Social service provider
    • Regional/local government
    • Public employment service
    • Business partners/supply chain
    • Private consultants
    • National government
    • Banks
  • Management of change activities
    • Wage flexibility measures
    • Transition of affected employees to other employers
    • Support of start-ups by and business transfers to employees/support to establish workers cooperatives
    • Income support for affected workers
    • Employment subsidies
    • Information and consultation of workers or their representatives
    • Multistakeholder communication and networking

The collapse of package-holiday giant XL Leisure Group made front-page news in September 2008, with tens of thousands of British holidaymakers stranded in airports across Europe and hundreds of employees made redundant. As the company’s assets were frozen, flights grounded and holidays cancelled, the scale and nature of the meltdown quickly became apparent. Indeed, the operator’s demise was one of the earliest examples of the credit crunch affecting businesses. The size of debt amassed by XL Leisure, its previous failed restructuring, uncontrolled growth and mounting overheads meant that the company had been on the brink of insolvency for some time.
 

keywords
  • Recession/crisis
  • Cross-border restructuring
  • Business transfer and succession