Travelex falls into administration, losing 1,300 jobs | Business

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Currency exchange company Travelex collapsed in administration, with the immediate loss of over 1,300 jobs.Consulting firm PwC has been appointed to carry out a complex restructuring deal and pre-pack administration, which allows buyers to select the best assets and get rid of the ones they don’t want.

Directors said the impact of a cyber attack in December and the ongoing Covid-19 pandemic had “had a huge impact on the business.”

A special-purpose vehicle made up of a group of its creditors bought the UK company, which serves large businesses and supermarkets as well as vending machines outside UK airports. They also acquired Travelex businesses in Brazil, the Middle East and Turkey, Nigeria and Asia-Pacific.

However, a number of other locations have not been sold, including some of its airport locations, as the majority of UK retail is no longer trading. Currency trading has been hit hard by travel restrictions imposed in the wake of the Covid-19 pandemic.

PwC said 1,309 jobs were cut, but more were saved thanks to the pre-pack deal.

Toby Banfield, Co-Director at PwC, said: “The completion of this transaction has saved 1,802 jobs in the UK and 3,635 globally and continued to maintain a globally recognized brand.

“Unfortunately, as the majority of UK retail is no longer able to continue trading, this has unfortunately resulted in the layoff of 1,309 UK employees today.”

The deal reduced the group’s debts from £ 385million to just £ 160million, and £ 84million in new cash was pumped into the business.

It comes six months after the company was attacked by ransomware hackers earlier this year. The attack caused a month of disruption and at times staff could not use computers to track their currency exchanges. The breach disrupted online travel money services for clients such as the Royal Bank of Scotland, Barclays, Tesco Bank and Asda.

As part of the deal, Travelex CEO Tony D’Souza will be replaced by “turnaround specialist” Donald Muir.

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D’Souza said: « I am very happy to announce this transaction. Once completed, it will be the opportune time for me to step down as CEO as New Travelex enters the next phase of its development.

“I would also like to thank all of Travelex employees, whose commitment to the company has been exceptional throughout this difficult time.

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