Thomas Cook reports £398m loss and closes 200 stores

Thomas Cook: plans to close 200 stores over the next two years
Thomas Cook: plans to close 200 stores over the next two years

Thomas Cook has confirmed it will close 200 underperforming outlets with the expected loss of more than 650 jobs as the holiday provider moves to turn around its ailing business after reporting a £398m loss.

Thomas Cook today (14 December) reported the dramatic loss in the year to end of 30 September 2011, compared to £42m profit the year before.

The company has been hit by poor trading in the UK and the recent troubles in North Africa, which put tourists off travelling to popular destinations such as Tunisa and Egypt.

The group's results were hit by exceptional charges totalling £573m, which included write-downs in the value of its UK and Canadian business.

Thomas Cook said it will close 200 stores over the next two years, as part of its UK turnaround plans.

The troubled holiday provider had already said it expected to close 75 outlets following its merger with the Co-op's UK high street business. It will now close a further 125 over the next two years.

The £398m loss contrasts markedly with the relative health of arch rival Tui, which undertook a knocking press campaign, highlighting its competitor's woes.

In a further move to reduce costs, Thomas Cook has agreed to sell its 51% stake in Hoteles Y Clubs De Vacaciones (HCV) to Grupo Iberostar, in a deal which could net it £61m in cash.

The sale brings proceeds from Thomas Cook's £200m asset disposal programme up to around £120m, after earlier sales of hotel in Tenerife and Mexico.

Follow John Reynolds on Twitter   @johnreynolds10


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Toyota achieves the impossible by calming angry Roman drivers
Tom of Finland's 'homoerotic' drawings made into stamps
YouTube reveals user habits to appeal to 'older' marketers
Ex-M&S marketing chief Steven Sharp consulting at WPP
Wolff Olins reveals new CEO after Apple poaches Karl Heiselman
Glasgow offers £30,000 prize to best digital idea for 2014 Commonwealth Games
Google's revenues surge but shares drop as it grapples with transition to mobile
Facebook beats Twitter to most 'marketing friendly' social media site crown, says DMA
Fableists believe children like Finn should be outdoors enjoying life
Homebase, Baileys and Camelot join the line-up at Media360
MasterCard renews Rugby World Cup sponsorship to push cashless message