CLUB Med is believed to be ripe for a possible
takeover after reporting losses of £62 million for 2001.
The French resort operator – which has been undergoing
a radical restructure over the last four years – said the economic downturn
since November 2000 and the US terrorist attacks had combined to have a
“significant effect” on its performance.
A large chunk of the losses were as a consequence of
emergency measures taken after September 11. Reorganising its operation, with
the closure of 17 holiday villages across Europe, cost £37 million.
Club Med chairman Phillipe Bourguignon warned the
short-term outlook was not good. “Continued hesitation amongst consumers
will have consequences for the 2001/2002 winter season,” he said.
The Agnelli family, which
owns 22% of Club Med, is reported to be unhappy about the company’s slow
progress at finding a new direction away from the holiday villages concept. In
the past the company was an unsuccessful target of Thomson-owner Preussag.