Thomas Cook Regulatory News (TCG)

26 Jun 2007 15:19

Thomas Cook Group PLC26 June 2007 26 June 2007 Thomas Cook Group plc proposals for integration of its UK and Ireland business Thomas Cook Group plc today announced its proposed UK & Ireland location, retailand branding strategies. These plans are a key step in the integration of theformer MyTravel and Thomas Cook businesses, which merged on 19 June 2007,contributing to the achievement of synergies of at least £95 million (€140million). Under the proposals announced today, the Group's divisional head office would bein Peterborough, with six UK sites to close. The retail network is currently being reviewed with a view to reducing thenetwork by 150 stores to around 800 stores. It is proposed that the main retailbrand would be Thomas Cook, with the Going Places brand retained in towns thatwill have more than one store. The company expects that if the proposals go ahead, an estimated 2,500-2,800roles will ultimately be affected. The Group's key holiday brands will include Airtours, Direct Holidays, Manos,Panorama, Sunset, and Thomas Cook, as well as specialist brands. The combined aircraft fleet will operate under the brand of Thomas Cook Airlines The integration process is expected to involve the closure of six sites and anumber of stores, the Group has stressed to employees that where possibleredeployment opportunities will be offered to all affected staff. Manny Fontenla-Novoa, Joint Chief Executive, Thomas Cook Group plc said: "Today's announcement is about a significant UK reorganisation. As many aspossible of those whose roles are potentially affected by today's news will beoffered the opportunity for redeployment within the business, as we areabsolutely committed to retaining the skills and experience of all ourworkforce. However, we appreciate that some employees will either not want totake up our offer of redeployment or will not be able to do so. For thoseemployees we will provide appropriate redundancy packages and full support. "It is only a week since the merger was completed. Our priority has been tocommunicate integration proposals to our employees as soon as we could. Today wehave put in place a comprehensive employee consultation programme to support ourpeople through the integration process. We will do everything we can to supportthose employees who are affected through the next few months." Subject to consultation, it is proposed that the business will operate fromsites in Peterborough - Coningsby Road (UK & Ireland head office), ManchesterAirport Hangar 1 (airline operations), Bradford - Aldermanbury ( HolidaysDivision and Customer Support functions), Accrington - the Globe Centre (callcentre), Falkirk - Central Park (call centre), Glasgow - Granite House (callcentre), Brighton - Locksview, (specialist tour operations), and Birkenshaw(distribution warehouse). Under the proposals the following sites may close:Rochdale - Holiday House, (Head Office) Manchester Airport - Commonwealth House(Airline Operations), Manchester - Lloyds House, (specialist call center),Helmshore (Holidays Division and Customer Support functions) Birmingham (callcenter), and Denton (distribution warehouse) . Ends EnquiriesThomas Cook Group plc UK & Ireland Press OfficeTelephone: 0870 010 2581Email: pressoffice@thomascook.com About Thomas Cook Group plc Thomas Cook Group plc was formed on 19 June 2007 by the merger of Thomas Cook AGand MyTravel Group plc. The new company is one of the world's leading leisuretravel groups with sales around £8 billion (€12 billion), 19 million customers,around 33,000 employees, a fleet of 97 aircraft, a network of over 3,000 ownedor franchised travel stores and a number of hotels and resort properties. Ithas operations in four regions: UK & Ireland; Continental Europe (Germany,Austria, Belgium, France, the Netherlands, Poland, Hungary, Slovenia andSlovakia); Northern Europe (Sweden, Norway, Denmark, Finland) and North America(Canada and USA); and German airlines operating under the Condor brand. This information is provided by RNS The company news service from the London Stock Exchange