STA Travel goes under: Iconic travel agent that was founded by two Australian backpackers in the 1970s files for insolvency as coronavirus brings tourism to a standstill
STA Travel has filed for insolvency after the coronavirus pandemic wreaked havoc on the tourism industry.
The travel agency - which focuses on package tours for backpackers and young people - went into administration on Thursday.
STA Travel was founded by two Australian backpackers in Melbourne in 1979 and originally stood for Student Travel Australia.
It later rebranded to become Student Travel Association and then Start The Adventure.
At its height the travel agency had 70 stores in Australia but that number halved.
STA Travel has filed for insolvency after the coronavirus pandemic wreaked havoc on the tourism industry
In a statement parent company STA Travel Holding AG blamed the pandemic for the company's financial woes.
'The global magnitude of the pandemic crisis has brought the travel industry to a standstill, including STA Travel, a student and youth travel company,' it read.
'STA Travel Holding AG is filing for insolvency in the next few days. An external administrator will take over and determine next steps.'
'Over recent months, the company took decisive measures to secure the business beyond COVID-19.
'However, sales have not picked up as anticipated, due to consumer uncertainties, further restrictions and renewed lock-down measures, which are expected to largely continue into 2021.'
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