Japanese travel agency Terumi club has started the bankruptcy procedures on March 26th 2017.
The reason of bankruptcy
President of Terumi club, Chikako Yamada held a press conference on March 27th in Tokyo. According to her, the reason of bankruptcy is increase of advertising cost on newspapers. This company sold excess plane tickets which bought directly from airline companies. But recently those airline companies came to no long sell that kinds of tickets. So Terumi club has started to sell package tours to elderly people and placed an ad on the newspapers.
The victims of this bankruptcy
The number of victims of this bankruptcy will be 80,000 – 90,000 people. They have already paid for the travel expenses to Terumi club. And also 2,500 people have already been on a trip. Some of them were declined to stay by hotel because Terumi club had cancelled those hotels without notice.
Will be refunded?
Terumi club was a member of a organization for travel agencies and it will guarantee to some extent. In case of Terumi club, the organization’s going to guarantee to pay 1.2 million dollars to all victims. But it will be difficult to refund all the amount of damage because it will be 10 billion dollars.
Is it fraudulence?
Chikako Yamada explained that this is not fraudulence. But Terumi club could know this bankruptcy in advance though, they continued to sell their package tour until the bankruptcy.
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