Muckle advises Hays Travel on Thomas Cook deal
Up to 2,500 jobs at Thomas Cook could be saved after Hays Travel, the UK’s largest independent travel agent, has agreed to buy the historic holiday company’s high street shops.
Hays Travel will acquire the entire retail portfolio of 555 former Thomas Cook shops after it signed a deal with the Official Receiver and Special Managers from KPMG.
Specialist lawyers from across our firm responded swiftly to help deliver this deal.
The lead team included partner Philip Clare (corporate), senior associate Deborah Lazenby (property), partner Kelly Jordan (restructuring and insolvency) and solicitor Sam Roberts (commercial), who were all supported by numerous other lawyers throughout the transaction.
Saving shops and jobs
Hays Travel has already employed more than 25% of the former Thomas Cook retail employees and is proposing to re-open the stores with immediate effect where possible and to take on up to 2,500 people. Over 100 new jobs will be based at the company’s Sunderland headquarters with the rest in shops across the UK.
Thomas Cook was placed in compulsory liquidation on September 23rd, upon which the Official Receiver was appointed by the court as liquidator. Special Managers from KPMG were also appointed by the court to assist the Official Receiver with the liquidation.
Hays Travel, at the invitation of the Civil Aviation Authority, immediately responded to support thousands of customers on holiday or with holidays booked.
They also offered jobs to over 600 former Thomas Cook employees and offered to help all of the Thomas Cook apprentices to complete their training at the Ofsted accredited Hays Travel Academy.
The deal involves re-opening retail premises that will complement Hays Travel’s own 190 shops across the UK.
Hays Travel is a private company, jointly owned and managed by John Hays, Managing Director, and Irene Hays, Chair of the Hays Travel Group. The company hopes to take on as many of the 2,500 former Thomas Cook retail employees as possible in the coming weeks, doubling its workforce.
Irene said: “Thomas Cook was a much-loved brand and a pillar of the UK and the global travel industry. We will build on the good things Thomas Cook had – not least its people – and that will put us in even better stead for the future.
“We all share a passion for the travel industry and we want to continue to build the company’s reputation for first class service and being a great place to work and develop a career.”
Trebling shops, doubling workforce
John Hays said: “Our staff were devastated to hear about Thomas Cook and we all immediately felt we wanted to help.
“In the last two weeks we have already employed or offered jobs to around 600 former Thomas Cook colleagues, and it has been a very emotional experience for them.
"Now that we are able to re-open the shops, we are looking forward to welcoming many more people who share our passion for the travel industry, into our family business.
“I’m very proud of the fantastic team who have helped me build Hays Travel over almost 40 years and they have worked tirelessly over the last couple of weeks to bring this about.
"It is a game-changer for us, almost trebling the number of shops we have and doubling our workforce - and for the industry, which will get to keep some of its most talented people.”
To find out how our corporate team can help your business please call Philip Clare on 0191 211 7971 or email [email protected].