Pre-pack deal rescues Travelex, but results in the loss of 1,300 jobs

7 August 2020

Pre-pack deal rescues Travelex, but results in the loss of 1,300 jobs

Foreign exchange firm, Travelex, collapsed into administration, with the immediate loss of more than 1,300 jobs.

PwC, the appointed advisory firm, say the firm was ‘acutely impacted’ by Covid-19 and a cyber-attack 6 months ago involving ransomware hackers. Administrators were appointed to help carry out a pre-pack administration along with a complex restructuring deal, allowing buyers to pick and choose to buy the assets they want and ditch those they do not.

A pre-pack deal has now been reached, saving 1,800 UK jobs, and enabling the struggling travel money firm to stay in business.

The special purpose vehicle saving the UK business is made up of a group of its creditors, which serves major corporate and supermarket customers and ATMs outside UK airports. Travelex operations in Brazil, Middle East, Turkey, Nigeria and Asia Pacific have also been acquired. Though not all locations were sold; the high street shops and airport sites which were closed during lockdown will not be reopening.

The deal brings £84m new money as well as reducing the business debts substantially.

Joint administrator at PwC, Toby Banfield, 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.”

Categories: Administration

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