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Hays Travel Takes On Thomas Cook Stores And Staff

The 555 stores that Thomas Cook had on the high streets of this country have been bought by Hays Travel. This has also seen Hays offer 600 Thomas Cook employees employment with further offers to the rest of the employees being purported in the press (time will tell if they will employ all 2,500 as stated in most press articles as Hays won't be hampered by TUPE, with contracts terminating on the making of the winding-up order)

The deal was concluded by the Official Receiver as Liquidator and KPMG as Special Managers and appears to see deals struck with the landlords for the stores to re-open. There is no indication at this stage as to the premiums, if any, that have been paid for this (it is possible that leases had terminated in some cases). It has been reported in some press articles that Hays have been granted six month licences to occupy in order to strike deals with landlords.

The deal sees Hays go from 190 stores to 745 and will see their 1,900 workforce grow significantly. Hays had reported profits of £10 million last year and this represents a huge expansion.

OUR VIEW

This is a bold move from Hays. To grow so significantly and at a difficult time for travel agencies, as more people turn to online bookings of holidays. However, due to it being a Liquidation they may well have been able to get very good deals on the leases, have a strong negotiating position with landlords and without TUPE, they can cherry pick which employees they wish to take on.

Let's hope it is a success, and one thing is for sure it is excellent news to see many employees' jobs saved.

HELP

Having read lots of interesting views on this and the success of my "Why Was British Steel A Compulsory Liquidation?" webcast via CPD Tap I am thinking of a "Why Wasn't Thomas Cook An Administration?" webcast for our CPD Tap subscribers.

If you have any views on this I would love to hear from you at richard@ntinsolvency.com

Posted: 09.10.2019
Tags:  announcement
 


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