Thomas Cook closes 200 travel agencies after 620M loss | RetailDetail

Thomas Cook closes 200 travel agencies after 620M loss

Thomas Cook, the second biggest travel company in Europe, has announced to close 200 of its 1300 British travel agencies, 125 more than announced earlier. The move, caused by disappointing financial results, lifts the job loss to 660. The group also aims to sell 6 of its 41 planes and about 500 hotels in an attempt to reduce the company's net debt of over 1.3 billion euro.

Exceptional charges sink yearly profits

In general, the financial year that ended on 30 September was not all bad, as revenue rose to from £8.9 billion to £9.8 billion (€10.6 to 11.7 billion) and underlying profit was still £303.6 million (over €360 million). Due to 'exceptional charges' however, results before tax went down from a £42 million (just short of €50 million) profit to a loss of £378 million (€475 million). The reported loss after tax was £518 million (€620 million), down from a £3 million profit last year.

 

The results did not come as a complete surprise, as the group had issued three profit warnings in 2011. The world's oldest travel agency (founded in 1841 and in Belgian hands until 1948 as part of the mythical Wagons-Lits company) was barely saved from bankruptcy by a £200 million (€240 million) emergency loan from banks last month. 

Thomas Cook, the second biggest travel company in Europe, has announced to close 200 of its 1300 British travel agencies, 125 more than announced earlier. The move, caused by disappointing financial results, lifts the job loss to 660. The group also aims to sell 6 of its 41 planes and about 500 hotels in an attempt to reduce the company's net debt of over 1.3 billion euro.

Exceptional charges sink yearly profits

In general, the financial year that ended on 30 September was not all bad, as revenue rose to from £8.9 billion to £9.8 billion (€10.6 to 11.7 billion) and underlying profit was still £303.6 million (over €360 million). Due to 'exceptional charges' however, results before tax went down from a £42 million (just short of €50 million) profit to a loss of £378 million (€475 million). The reported loss after tax was £518 million (€620 million), down from a £3 million profit last year.

 

The results did not come as a complete surprise, as the group had issued three profit warnings in 2011. The world's oldest travel agency (founded in 1841 and in Belgian hands until 1948 as part of the mythical Wagons-Lits company) was barely saved from bankruptcy by a £200 million (€240 million) emergency loan from banks last month. 

Questions or comments? Please feel free to contact the editors


Action owner wants to sell stake

18/05/2018

Action’s owner, investment firm 3i, aims to sell a part of the discount store chain next year. The Brits would want to sell a 35 % stake in the firm.

Belgian fund close to HEMA acquisition

09/05/2018

Belgian Core Equity holding is allegedly close to acquiring Dutch chain HEMA: a verbal agreement is apparently in place, all that is required are the signatures.

Walmart, not Amazon, will acquire Indian market leader Flipkart

07/05/2018

Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations

07/05/2018

Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.

Shareholders ‘not amused’ by Unilever CEO's wage increase

03/05/2018

One in three British Unilever shareholders voted against the company’s proposed remuneration plan. Investors in the Dutch part of the (currently) British-Dutch company will vote on the plan as well.

Macy's acquires New York-based concept store Story

02/05/2018

American department store chain Macy’s will acquire New York-based concept store Story. Founder Rachel Schechtman will become Macy’s’ “brand experience officer”.