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Travelex completes debt restructuring and axes 1,300 jobs

The transaction is being arranged through a pre-packaged administration sale of certain UK Travelex entities. 

Finablr PLC - Travelex poised for reboot as debt restructuring is completed

Travelex, the airport foreign currency specialist, said it will complete its debt restructuring later today but more than 1,300 jobs will be lost in the process.

The transaction will see a new Travelex group established with debts reduced to £160mln from £385mln.

A further £84 million of new liquidity will be in ejected into the new Travelex Group to build on its current, market position and brand, said the statement.

However, some parts of the UK business including the airport-based outlets are to be closed.

Toby Banfield, joint administrator at PwC, said: “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.”

New Travelex comprises the wholesale and outsourcing business and the business in Brazil, Middle East & Turkey, Nigeria and Asia Pacific.

Travelex's retail businesses in Europe and North America will remain within the old Travelex corporate structure and will not transfer.

The retail business in the UK that is staying open will also remain within the old Travelex corporate structure, and will be operated out of Travelex Foreign Coin Services Limited. 

The transaction is being arranged through a pre-packaged administration sale of certain UK Travelex entities. 

Following completion of the transaction, Tony D'Souza will step down as CEO of Travelex. 

Turnaround specialist Donald Muir, who has been working within the business for several months, will be appointed CEO of New Travelex. 

D'Souza said: "I am very pleased to announce this transaction which provides New Travelex with a stable platform to rebuild revenues under the stewardship of its new shareholders.  I feel that on completion it will be the appropriate moment for me to step down as CEO as New Travelex moves into the next phase of its development.

Travelex was part of Finbalr PLC (LON:FIN), which has been suspended since March after it announced a possible US$100mln fraud.

The coronavirus lockdown, meanwhile, has severely reduced the number of passengers using airports, hitting Travelex's operations.

 

-- adds jobs detail --

 

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