Thomas Cook has confirmed it’s going to sell its North American travel business to Red Label Vacations in a deal worth £3.4 million.
The business includes the tour operator Sunquest and the 60-branch My Travel retail chain in Canada.
However, the organisation is deeply within the red, having made a lack of almost £40m last year.
The sale includes Thomas Cook Canada and Thomas Cook USA, which might be together often called Thomas Cook North America (TCNA).
Thomas Cook group head of communications, Jenny Peters, said: “Canada is an excessively competitive market with quite significant over capacity.
“It has not been a core portion of our business for your time.”
TCNA also owns ABC Corporate Services and D-FW Travel Arrangements within the Usa.
Proceeds from the sale may be used to minimize the borrowings at Thomas Cook.
Group chief executive Harriet Green said: “As we continue to drive the transformation of the Thomas Cook Group i’m pleased to have reached agreement to divest our North American business, enabling us to highlight our core segments and future growth.
“The combination of TCNA’s product portfolio and Red Tag’s online presence form a beautiful proposition for Canadian customers and we want the team every success at some point.”
The sale of its North America business is the primary to be completed since Green announced her strategic review of the corporate last week.
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