ADMINISTRATORS of the former Ansett-owned package holiday firm Traveland yesterday sacked its 550 staff but saved the brand name after finalising a deal in which two former directors bought the company’s franchise network for $2 million.

The deal, last night described as “a bit of a worry” by Australian Services Union secretary Luke Foley, means that about 250 franchisee outlets around Australia will continue to trade under the Traveland name.

But for Traveland’s 96 company-owned stores, yesterday was the end of the road. Staff were advised by email at 11am that the doors would close at noon.

Mr Foley said the closures marked a “sad day for the Australian tourism industry”.

He said the main priority now was to ensure the $10million owing in worker entitlements was paid out in full.

But Hall Chadwick administrator Geoff McDonald warned workers could struggle to get more than 50c in the dollar.

He said government funds would be required to make up the shortfall.

Mr McDonald said a committee of creditors had agreed to sell the franchise network to Financial Options Group Incorporated, a company controlled by Internova Travel Ltd directors Robert Walker and Robert Johnstone.

Mr Walker, a former executive director of Macquarie Bank, and Mr Johnstone are principals of the Australia Fund, a company which specialises in socially responsible investments.

They became involved in Internova after it had purchased Traveland in September from Ansett administrators Andersen.

“The first group of shareholders did not have enough capital … the second group, the Walker-Johnstone group, sought to bail out the first and take control,” Mr McDonald said. “They did take control but were stuck with earlier decisions made by the (original) purchasers.”

Mr McDonald said Financial Options had offered the best price for the Traveland franchise network and its offer was unconditional.

“Fundamentally, it gives the best opportunity for the franchise network to move forward,” Mr McDonald said.

But Mr Foley said there was concern the administrator had recommended a sale to the same people that had appointed them in the first place.

“It was an issue in the creditor’s committee — there were some questions about it,” Mr Foley said.

“But Hall Chadwick ran the usual stuff that they are totally independent and didn’t have links with anybody.”

Many of Traveland’s head office staff spent yesterday afternoon drowning their sorrows at the Toxteth Hotel at Glebe in Sydney’s inner-west.

“It is a very sad day, we are all very affected,” said Colleen Cummins, who worked in the accounts section.

“We loved our jobs, especially us old ducks. There were a lot of long-termers, they were fantastic to work for, lovely. Traveland was like a family.

“Now we are gone. We will wake up tomorrow and try and get dressed to go to work, and we won’t have anything to go to.”