Jucy THE DARLING OF THE BACKPACKER HOLIDAY

Such a screaming shame to see such an iconic brand struggling. The past twelve months have seen Jucy in New Zealand really battle the world elements. The Bush Fires in Australia saw a downturn for their Australian operation followed by torrential floods and finally COVID-19 is pushing all their pain points.

Street Talk understands campervan hire and car rental business JUCY – which targets the backpacker and budget traveller market – is feeling some COVID-19 pain.

Like tourism companies big and small, COVID-19 has seen its bookings revenue fall off a cliff, as interstate and international travel ground to a halt in the past couple of months.

It is understood the New Zealand-founded company has turned to professional services firm PwC for help. Goal No.1 is shoring up its financial position and survival.

Sources said the boffins at PwC have been walking JUCY’s management through their options, assessing things like a capital injection to help the business get through to the other side of the pandemic.

The family-owned company has been around since 2001 and has a fleet of more than 4000 cars and campervans across Australia, New Zealand and the United States.

It also operates two cruise boats at Milford Sound – a fiord on New Zealand’s South Island – and three budget accommodation locations in Auckland, Christchurch and Queenstown

JUCY’s story is just one of many in the travel business, one of the industries hardest hit by COVID-19.

JUCY’s management will no doubt be weighing up their options carefully but with capital reserves tight and the clock ticking they could be faced with that classic hitchhiker conundrum.

AFR.com  May 5 2020