Kuoni to close or offload loss-making businesses

Monday, 24 September 2012 00:00 - - {{hitsCtrl.values.hits}}

A range of loss-making tour operations within the Kuoni portfolio are to be sold or shut down.

Affected businesses include online hotel platform Octopustravel together with tour operating activities in Italy, Spain, Holland, Belgium and Russia.

Collectively, they generate annual turnover of approximately 300 million Swiss francs and employ around 500 people.

The Swiss-based parent company is to explore exit options including a “complete or partial sale, management buy-out, or even termination of activities if no sustainable solutions can be found”.

The company said that “in the light of the evolution of the Kuoni group’s portfolio, various smaller loss-making tour operating businesses are no longer of strategic relevance to the group.

“Kuoni no longer wants to run these activities and will explore exit options depending on circumstances for each of the various businesses.”

The move will cut annual operating losses of around 17 million Swiss francs and involved direct costs of 35 million Swiss francs.

“The portfolio reduction affects European tour operating activities that have been loss-making for several years,” Kuoni said.

The group is to start consultations with staff “in accordance with the statutory provisions in each national market”.

The statement said: “It is possible, in the event of a sale or management buy-out, that business activities may be continued outside the Kuoni group, thus preserving the associated jobs.”

A progress report on the sale process is due to be given on November 8 as part of Kuoni’s third quarter business update.