Thomas Cook falls as much as 24% on Harriet Green’s departure
The company said Green would be replaced by chief operating officer Peter Fankhauser
Thomas Cook Group Plc said chief executive officer Harriet Green, the woman credited with restoring the fortunes of the 173-year-old travel company, is stepping down immediately. The shares fell as much as 24% on the news.
In a surprise move, the company said the 52-year-old would be replaced by chief operating officer Peter Fankhauser, a year after he was promoted to that position.
Chairman Frank Meysman said on a conference call with journalists on Wednesday that Green’s resignation will mark a shift in direction at the company from restructuring towards implementation of strategy. Fankhauser has more experience of the travel market, he added.
“The strategy is there and it will not change, it is now a matter of executing that strategy," Meysman said. “Knowledge of the market is more important," he said, adding that, after 13 years at Thomas Cook, the new CEO is a “travel experience expert."
The shares were down 20% at 110 pence as of 10.45am in London.
Before becoming COO, Fankhauser was in charge of Thomas Cook’s U.K. and continental European operations. Green had held the CEO role for two years, Thomas Cook said in a statement on Wednesday.
The company’s loss after tax was £115 million for the year ended 30 September, compared with a loss of £213 million a year earlier, Thomas Cook said in a separate statement. Sales fell almost 8% to £8.5 billion.
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