The Co-op has revealed that it will be ending its long-standing partnership with Thomas Cook in an £82 million deal.
Already three years into a turnaround plan, The Co-operative Group’s 30% stake is to be bought for £50 million in November 2017, along with £32 million in dividends. The Central England Co-operative will also receive £5.8 million for its 3.5% stake in Thomas Cook.
This is expected to be invested directly into the group’s turnaround strategy, refurbishing grocery stores and refining its flagship membership scheme.
Rod Bulmer, Co-op chief executive, said: “We have enjoyed a successful partnership with Thomas Cook through the joint venture. Going forward, having a minority stake in a travel business does not fit with the strategy of the Co-op.”
Thomas Cook will supposedly take control of the group's 764 travel agencies across the country in November next year and Central England Co-op will sustain 20 travel outlets not involved in the joint venture and will continue to operate under the Co-ops name.
