THOMSON has scrapped plans to buy independent agents and put its retail expansion on hold.
It has written to several retailers, some of whom were on the verge of selling to Thomson, telling them all deals are off.
Agents were fuming after receiving the letter. Those poised to sell their business have not only seen their hopes of becoming millionaires dashed but have forked out £40,000 to £50,000 in legal fees.
UK retail development managing director Nigel Cleevely, who has been with the company for 17 years, has decided to leave following the decision.
Cleevely’s 15-strong team has also been disbanded. Most, who were seconded from other areas of the business, have returned to their previous roles while a handful are being redeployed elsewhere in the company.
Retail development purchasing director David Bryson is expected to stay on and is having talks with Thomson Holidays and UK distribution MD Richard Bowden-Doyle about another role.
Travel Weekly exclusively revealed on April 19 how Thomson had written to agents inviting them to sell their businesses. The plan was introduced by former chief executive Paul Brett, who was intent on increasing its high-street presence by 400 shop equivalents.
But acting chief executive Roger Burnell has instigated a complete review of the business and put a stop to any further acquisitions. Officially the plans are on hold until Christmas, when the review is completed.
But any resurrection is unlikely because Burnell is concentrating on expanding its direct-sell business. Only Travel House has been given the all clear to continue buying agents although managing director Martin Morgan has been summoned to a meeting at Greater London House on Wednesday.
Cleevely was thought to be uncomfortable with Brett’s policy of buying agents and one source said it was flawed.
“There was no logic in buying an independent agent who may specialise in tailor-made holidays and turning it into a Thomson shop,” said the source. “You are buying customer loyalty with an independent agent and by changing the entire nature of its business you are losing a large percentage of its customers.”
A Thomson spokesman refused to say whether it would foot the legal bills, but stressed deals could be rekindled.