Travelex Holdings Limited, Travelex Limited, Travelex UK Limited, Travelex Group Investments Limited and Travelex Financing Plc (“the Companies”) - in administration
Toby Banfield, David Kelly and Edward Macnamara of PwC were today (6 August 2020) appointed as joint administrators of Travelex Holdings Limited (“THL”), Travelex Limited (“TL”), Travelex UK Limited (“TUK”), Travelex Group Investments Limited (“TGI”) and Travelex Financing Plc (“TFP”). Travelex Banknotes Limited (“TBL”) previously entered administration on 21 July 2020.
The Travelex Group is the global market leader in cash foreign exchange services. It trades in over 80 currencies and operates in more than 50 countries, both online and through a network of over 1,000 stores including major airports, with more than 1,000 ATMs around the world. The group also provides outsourcing services for partners including banks, supermarkets and travel agencies, extending its reach to over 60 countries.
The impact of a cyber attack in December 2019 and the ongoing Covid-19 pandemic this year has acutely impacted the business.
A complex restructuring deal completed today has delivered £84m of new money and substantially deleveraged the new group. This was implemented through a pre pack administration sale of certain entities and assets to the company’s senior secured noteholders. In the UK, the acquisition largely comprises the UK wholesale and outsourcing businesses that service major corporate and supermarket customers in addition to the UK ‘non airport’ ATM estate. PwC acted as lead financial adviser to the Travelex Group.
The purchaser is Travelex Acquisitionco Limited, a special purpose vehicle controlled by the Noteholders to the global Travelex Group.
The transactions include:
Business and assets of TL, TGI and TUK to Travelex Acquisitionco Limited. This notably includes the UK wholesale and outsourcing business and certain international retail businesses of Travelex (Brazil, Middle East & Turkey, Nigeria and Asia Pacific)
Business and assets of TBL sold to Travelex Currency Services Limited
Business and assets of TUK sold to Travelex Cloud Services Limited to operate the ATM estate
Certain assets of TUK were also sold to Travelex Foreign Coin Services Limited (“TFCS”) to retain the option to review and reshape UK retail operations once global travel restrictions are lifted and passenger numbers increase
However, various airport and non-airport locations have not been sold, as the majority of the UK retail business is no longer trading. This is also true of various retail and airport locations internationally.
Toby Banfield, joint administrator at PwC, said:
“We would like to thank the employees, management team and all stakeholders who have been an integral part of the Travelex business for their tireless efforts. Against the challenging backdrop of the pandemic and current economic climate, they have helped to deliver a highly complex restructuring, enabling a core part of the business to continue operating under new ownership.
“The completion of this transaction has safeguarded 1,802 jobs in the UK and a further 3,635 globally, and ensured the continuation of a globally recognised brand. Unfortunately, as the majority of the UK retail business is no longer able to continue trading, it has regrettably resulted in 1,309 UK employees being made redundant today. Our dedicated employee team will be providing support to all of the people impacted.”
The joint administrators will be writing to creditors in the next few weeks to provide further information on the restructuring and the impact on creditors.
Queries relating to Travelex’s overseas businesses should be directed to those local businesses in the first instance, as the joint administrators have not been appointed over them. Should it still be necessary to contact the PwC team, the following email address can be used.
For media enquirues, please contact:
Jamie Harley - 07803 455664
Richard Pain - 07841 071907
Duncan Bowker - 07841 468175
Notes to editors:
On 31 December 2019, Travelex suffered a cyber attack that affected its business and in particular its customer-facing systems which were taken offline. The subsequent outbreak of Covid-19 created considerable uncertainty on future financial performance and the spread of the virus resulted in a sharp decline in air passenger numbers, impacting global travel.
In April 2020 Travelex announced that it was seeking a sale of the group but on 15 June 2020, it confirmed that the sale process had been terminated following the receipt of offers that were unacceptable to the group’s lenders and noteholders. The group then focussed on the parallel discussions with lenders and noteholders in relation to a long-term financial restructuring of the group.
It should be noted that TFCS has not been sold to Travelex Acquisitionco Limited, but will continue to trade as a subsidiary of Travelex Limited (in administration).
On 21 July David Kelly, Toby Banfield and Edward Macnamara of PwC were appointed as joint administrators of Travelex Banknotes Limited (“TBL”). No redundancies were made in relation to this insolvency process.
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