Hays Travel Ltd. agreed to buy travel company Thomas Cook Group PLC's entire U.K. retail estate in a deal that could see up to 2,500 former employees of the collapsed company re-employed.
Hays Travel agreed a deal with Official Receiver David Chapman, who was tapped by the High Court to act as the liquidator for Thomas Cook, and special managers from KPMG to acquire 555 stores of the 178-year old travel company for an undisclosed sum.
Thomas Cook was forced to enter into compulsory liquidation Sept. 23 after the British travel service provider failed to secure support from its shareholders and lenders for a £900 million rescue deal.
"This is an extremely positive outcome, and we are delighted to have secured this agreement. It provides re-employment opportunities for a significant number of former Thomas Cook employees, and secures the future of retail sites up and down the UK high street," said Jim Tucker, partner at KPMG and joint special manager of Thomas Cook's retail division.
"Over the weeks ahead, we will work closely with Hays Travel and landlords to ensure a smooth transition of the store estate."
Sunderland-based Hays Travel said in a statement it has already employed or offered jobs to about 600 former Thomas Cook employees over the past two weeks. With its decision to re-open the stores with immediate effect, it is looking to hire up to 2,500 people, more than 100 of which will be based at the company's Sunderland headquarters with the rest in shops across the U.K.
Hays Travel employs 1,900 people and has 190 retail branches, and the company reached sales of more than £1 billion in 2018. It operates Just Go Travel, which trades across the northwest of the country, and runs Hays Travel Independence Group, a consortium of independent travel agents.
The deal will almost treble the number of shops owned by Hays Travel and double its workforce.
"Thomas Cook was a much-loved brand employing talented people. We look forward to working with many of them," Hays Group Chair Irene Hays and Managing Director John Hays said in a joint statement.
White Hart Associates served as financial advisers for Hays in the transaction.
