A TRAVEL firm, which stopped trading after a "cash crisis", has been sold - a move which is expected to secure the future of the firm's remaining workers.

Last Friday, the Evening Press reported that Corporate Travel International Limited, (CTI), which has an office in Skeldergate, York, had gone into administration following cashflow difficulties.

CTI is a subsidiary of Harrogate-based air travel firm Cyberes Plc, which also went into administration.

But the business and its assets have now been sold to The Travel Company Limited.

The company hit difficulties after Cyberes, which employed 30 staff at its headquarters in North Park Road, Harrogate, did not attract enough customers to generate positive cash flow. As a result the group had insufficient cash to meet its monthly licence payment to the International Air Transport Association (IATA) and its licence to issue airline tickets had been withdrawn.

Based in Hull, CTI, which operates as a travel agency to the corporate, retail and internet travel markets and includes the Flightshop business, is run from seven branch offices including the one in York.

Eighty jobs were cut at CTI, including some in York, but 40 workers were kept on to keep the business going until a sale was secured. But the sale is expected to save the remaining jobs. It is hoped that some of the employees already made redundant will be re-employed.

Steve Ellis, of Pricewaterhouse Coopers, who is joint administrator of CTI, with Ian Stokoe, said: "We are delighted to conclude a sale of the business so swiftly, in circumstances where clients had an on-going need for service and hence a limited period in which to remain loyal to the business.

"It's a testament to the efforts of all concerned, particularly company staff in difficult circumstances that this has been achieved so quickly. We're especially pleased that the sale will preserve the employment of not only the core workforce we retained to keep the business going over the last few days, but may also provide an opportunity for most of the staff made redundant to return."

He said: "Overall we believe this to be an excellent outcome for creditors of the company."

The Travel Company, which was established in 1981, is now the UK's largest independently-owned travel management company, employing 400 people.

It operates a 24-hour service and has VIP service teams at both Heathrow and Gatwick airports.

Updated: 09:51 Friday, July 02, 2004