Thomas Cook Sells North American Operations to Canadian Firm

U.K.-based Thomas Cook Group PLC has announced that it is selling its North American operations to Mississauga, Ont.-based Red Label Vacations Inc., which operates the travel website www.redtag.ca, for $5.2 million.

The deal includes Thomas Cook Canada and Thomas Cook USA Holdings, Inc., as well as tour operator Sunquest and the My Travel retail chain in Canada and ABC Corporate Services and D-FW Travel Arrangements in the United States.

The sale is slated for completion by May 31, subject government approval and certain financing guarantees. Proceeds from the sale will be used to reduce Thomas Cook’s 788 million pounds of debt load. The company has had financial difficulties since 2011, due to decrease in sales.

Source: Travel Pulse, http://www.travelpulse.com/thomas-cook-sells-north-american-operations-to-canadian-firm.html