Foreign exchange firm Travelex has announced a rescue deal – saving the firm from administration – however, up to 1,300 jobs across the UK are still at risk.
Professional services firm PwC were appointed administrators and revealed that a ransomware attack in January had severely damaged the firm, causing it to reach the brink of collapse. A group calling themselves Sodinokibi claimed to have accessed sensitive customer data and demanded a ransom of more than £4.6m.
Like many firms across the UK, dealing with the devastating impact, Travelex secured a pre-pack adminstration deal, which initially secured more than 1,500 jobs. This type of deal is where a firm sells all or some of its assets to a pre-determined buyer and appoints administrators to carry it out.
Travelex has now been acquired by a newly created company controlled by its lenders.
Toby Banfield, joint administrator at PwC, said: “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.”
Travelex suffered more than a month of disruption to its operations at the start of this year, after it discovered on New Year’s Eve that it had been hacked.