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Last Updated: Tuesday, 26 June 2007, 19:26 GMT 20:26 UK
Thomas Cook to close 150 branches
Thomas Cook sign
Thomas Cook and MyTravel had many operations that overlapped
Travel company Thomas Cook has said it will close 150 stores and six offices, in a move that could affect as many as 2,800 jobs, or about 15% of its staff.

The firm, which will be left with 800 stores, recently completed a �2.8bn merger with rival MyTravel, saying the deal would help the firms cut costs.

Sites in Rochdale, Birmingham, and Manchester are among those to close.

Thomas Cook said that it would look to find jobs elsewhere in the firm "where possible" for the affected workers.

"As many as possible of those whose roles are potentially affected by today's news will be offered the opportunity for redeployment within the business," said Manny Fontenla-Novoa, the company's joint chief executive.

"We will do everything we can to support those employees who are affected through the next few months."

Chris Fletcher, policy director at Greater Manchester Chamber of Commerce called the move a "blow for Greater Manchester and Rochdale in particular".

"MyTravel is a major employer in the area and has had a long-standing association with the area for over 30 years," he said.

Merger

The merger between Thomas Cook and MyTravel has created Europe's second-largest travel company and it holds around 35% share of the UK package holiday market.

KEY SITES AFFECTED
Rochdale - former headquarters of MyTravel
Manchester airport Commonwealth house - airline operations of MyTravel
Helmshore - holiday division
Birmingham - call centre
Denton - distribution site
all these were formerly part of MyTravel

Thomas Cook said the closures would help the newly-merged companies to cut about �95m in costs.

The newly-formed company is called Thomas Cook Group and is based in Peterborough, with a corporate headquarters in London.

It is 52%-owned by German retail chain KarstadtQuelle, which was the parent of Thomas Cook, and 48%-owned by the shareholders of MyTravel.

Its main holiday brands include Airtours, Direct Holidays, Manos, Panorama, Sunset, and Thomas Cook as well as other specialist holiday companies.

The firm's fleet of 97 aircraft will operate under the Thomas Cook brand.


SEE ALSO
MyTravel and Thomas Cook merging
12 Feb 07 |  Business
MyTravel makes return to profit
14 Dec 06 |  Business
MyTravel 'in First Choice talks'
26 Nov 06 |  Business
Weak spending hits Karstadtquelle
09 Aug 06 |  Business
MyTravel recovery as losses cut
15 Jun 06 |  Business
Thomas Cook returns to the black
06 Mar 06 |  Business

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