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7th August 2020
Travelex strikes deal to stay afloat-1,300 UK jobs to go
Travelex has struck a deal to stay afloat, but with the loss of more than 1,300 jobs in the UK.
Administrators PwC said the impact of a cyber-attack followed by the coronavirus crisis had “acutely” hit the company.
A restructuring deal completed yesterday Thursday delivered £84m of new money through a “pre-pack administration sale” of certain entities and assets.
The purchaser is Travelex Acquisition Co Limited, a special purpose vehicle controlled by the Noteholders to the global Travelex Group.
Toby Banfield, joint administrator at PwC,comments "The sale had saved 1,802 jobs in the UK, but 1,309 UK employees will be made redundant.
We would like to thank the employees, management team and all stakeholders who have been an integral part of the Travelex business for their tireless efforts.
Against the challenging backdrop of the pandemic and current economic climate, they have helped to deliver a highly complex restructuring, enabling a core part of the business to continue operating under new ownership.
The completion of this transaction has safeguarded 1,802 jobs in the UK and a further 3,635 globally, and ensured the continuation of a globally recognised brand.
“Unfortunately, as the majority of the UK retail business is no longer able to continue trading, it has regrettably resulted in 1,309 UK employees being made redundant today.”
As part of the deal, Travelex chief executive Tony D’Souza will be replaced by “turnaround specialist” Donald Muir.