PwC saves 1,800 jobs at Travelex

Toby Banfield, David Kelly and Edward Macnamara of PwC were appointed as joint administrators to the currency exchange services provider, after the cyber-attack in December 2019 and the pandemic both had an acute impact on the business.

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. On December 31 2019, Travelex suffered a cyber-attack which meant its customer-facing systems were taken offline.

A restructuring deal completed on August 6 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.

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.

"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. Our employee team will be providing support to all of the people impacted.”

Latham & Watkins also advised the committee of lenders in the debt restructuring of Travelex. The restructuring cut Travelex’s debt from £385m to £160m, with the €360m 8% 2022 senior secured notes receiving equity warrants, equivalent to 17.5% of the post-restructuring equity. Certain senior secured noteholders provided £84m of new money, and will take 100% of the post restructuring HoldCo equity.