In Brief

Co-op Travel leaves high street in £55m deal

Thomas Cook takes over more than 750 retail outlets in deal that will 'better integrate stores with its online offering'

Thomas Cook

Co-op Travel will disappear from the high street after a £55.8m deal with its joint venture partner Thomas Cook.

The five-year-old chain, which was branded under the Co-operative Group umbrella but was majority controlled by Thomas Cook, has struggled under the rise of online travel sites and retail outlets have dropped from around 1,200 retail outlets to 764. It had a five-year option to exit its stake, says Sky News

Thomas Cook paid £50m for Co-op's 30 per cent stake and a further £5.8m to buy out the 3.5 per cent interest controlled by the smaller Central England Co-operative group.

In addition, the Co-op was paid more than £30m in dividends, giving it a windfall of more than £80m which it said will be invested back into its core business.

Thomas Cook, which recently reported a decline in profits of more than 40 per cent, said the deal would enable it "to better integrate the stores with its online offering", says the Telegraph.

Boss Peter Fankhauser added it would also "help the company to focus on growing its sales of added extras", such as travel insurance.

"Equity analysts expect Thomas Cook will only take a small hit to its coffers after it announced plans to raise €750m (£632m) through a new corporate bond," says the Telegraph.

Recommended

Who’s to blame for UK’s looming Christmas crisis?
A man dressed as Santa Claus walks through Manchester city centre
Today’s big question

Who’s to blame for UK’s looming Christmas crisis?

Facebook: is this its Big Tobacco moment?
Former Facebook employee Frances Haugen testifies in front of Congress
In Focus

Facebook: is this its Big Tobacco moment?

Welcome to the metaverse 
Horizon Workrooms: the office of the future?
In Depth

Welcome to the metaverse 

The interest rate debate
Clouds over the City: is there trouble ahead?
Why we’re talking about . . .

The interest rate debate

Popular articles

Insulate Britain: what do they want?
Insulate Britain protesters
Profile

Insulate Britain: what do they want?

The tally of Covid-19 vaccine deaths examined
Boy receiving Covid vaccine
Getting to grips with . . .

The tally of Covid-19 vaccine deaths examined

‘Missing’ man joins search party looking for himself
Turkish police
Tall Tales

‘Missing’ man joins search party looking for himself

The Week Footer Banner