Thomas Cook Group has agreed to sell Thomas Cook Canada Inc and Thomas Cook USA Holdings to Red Label Vacations (Red Tag).
For C$45.3 million (£3.4 million), Thomas Cook is selling Thomas Cook North America (TCNA) to Toronto-based travel agent Red Tag as it seeks to cut its debt. The transaction is set to complete by May 31 but the deal needs clearance from Canada’s competition bureau and the release of financial guarantees by Thomas Cook Group and TCNA. As of September 30, 2012, TCNA had £169.3 in assets but it recorded a loss before tax of £86.7 for the 12 months to this date. Dean Moore, who heads TCNA’s management, will continue to lead TCNA after the sale. “Together with our partners at Red Tag, who offer a very different approach and valuable skill set to our organisation, I believe we are perfectly positioned as we continue to execute our turnaround plan," Moore said in a statement. Red Tag is a privately owned online travel agent based in Toronto, Canada, founded by Enzo, Joe and Frank DeMarinis. Source: routesnews, Piers Evans
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