Clear Leisure plummets as Italian travel unit suspends operations

Italy-focused investment group Clear Leisure lost almost half of its value on Tuesday after its majority-owned travel division ORH was forced to temporarily suspend operations.The company said that the decision was due to a number of factors affecting its African hotel subsidiaries as well as the wider hotel group, in which it owns a 73.43% interest.It explained: "The suspension follows the recent terrorist attack in Kenya and the killing of French and Italian tourists in Madagascar which, combined with lower demand and the subsequent fall in the selling price of holidays due to continuous deterioration of the Italian economy and reduction in consumer spending, has left the hotel group under a high level of financial pressure."Clear Leisure said it made this "direct action" to reduce any financial risk to its shareholders.It also said that it had found a number of "financial irregularities" within its African subsidiaries which are currently being investigated by external consultants.The stock was down 44.66% at 1.61p by 15:15 on Tuesday afternoon.BC