The pandemic and the end of JobKeeper has pushed one of Australia’s biggest hostel groups into administration but the directors are hopeful the business will thrive after it’s restructured.
Tourism Adventure Group (TAG), which went into voluntary administration at the end of June, had its second creditors meeting on Friday. In the meeting, landlords, employees, St George bank, the Australian Taxation Office and trade suppliers voted in support of the company’s deed of company arrangement (DOCA), including a proposal to restructure.
The only vote against the DOCA was from the landlord of two melbourne properties, United Backpackers and St Kilda Coffee Palace.
TAG operates Nomads, United hostel and Base networks across Australia and New Zealand, as well as Fraser Island tour groups, Mojo Surf Camps, sydney Iconic Tripz and several bars.
TAG managing director Dan Bunning said the COVID-19 pandemic, including the loss of backpacker trade and JobKeeper support meant the business had no choice but to enter into administration.
But Bunning predicts a strong rebound in youth travel once more people are vaccinated and international travel ramps up.
“We think that when borders open the youth will be the first to travel, and…
