Thomas Cook has confirmed plans to close 200 stores as part of a restructure of its UK business.
The holiday group said a review of its 1,300-store portfolio showed a need for a phased closure of around one-sixth of its shops where leases expire within the next two years.
It said it will continue to review the performance of its remaining portfolio as leases come up for expiry and more customers move online. It will also continue with the modernisation programme for its remaining stores.
In its audited results for the year ended 30 September 2011, Thomas Cook revealed it has completed the disposal of four hotels as part of its previously-announced plans to generate up to £200m from hotel and surplus asset disposals.
In November, the group amended its existing banking facilities to widen its financial covenants and increase financial flexibility until March 2013. It has also agreed a new £200m facility which replaces the £100m short-term facility confirmed in October.
Thomas Cook said it had slumped to a £398m pre-tax loss, compared with a £42m profit in the previous year.
annabel.dixon@estatesgazette.com
