The retail joint venture between Cook and Co-op Group, which was formed in 2011, is expected to end formally next November, after the latter exercised an option to sell its 30% stake to Cook for £50 million.
Central England Co-operative, formerly Midlands Co-operative, is also to receive £5.8 million for its 3.5% stake in the retail joint venture.
Co-op Group is also to receive a dividend of £31.9 million, which it was guaranteed as part of the original deal in 2011. Cook had already accounted for the pay-out, meaning it “is not expected to have a material impact on group profits”.
Alistair Rowland, Midcounties Co-operative’s group general manager, who left The Co-operative Travel the day before the joint venture took effect in 2011, told TTG: “There may be new opportunities to have a positive dialogue with Thomas Cook to see if there are any opportunities across their stores, homeworkers and consortium [Freedom Travel Group].”
A Cook spokesperson confirmed there would be “no redundancies” as a direct result of the announcement. The operator said in October that it was “refocusing” its retail network with 28 shops earmarked for closure – there are currently 764 stores in the joint venture.
Peter Fankhauser, Thomas Cook Group chief executive, also confirmed that all stores would be rebranded as Cook outlets over the next two years.
“This purchase gives us full control over our retail store network, enabling us to better integrate our stores with our online offering, while also helping us to focus on growing sales of added extras such as holiday-related financial services,” said Fankhauser.
Rowland added: “It’s sad that such a fantastic brand is going to be largely lost from the high street.
“We are a progressive, growing and profitable travel business and we will continue to use the Co-operative branding for as long as we choose to. This is going to make it less confusing for consumers.”
The confusion over the Co-operative brand forced Midcounties to put out a statement this week: “We are not linked in any way to the joint venture with Thomas Cook. We look forward to continuing to serve our travel customers for many years to come.”
Rod Bulmer, Co-op Group’s chief executive, consumer services, added: “Going forward, having a minority stake in a travel business does not fit with the strategy of the Co-op.”
