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Thomas Cook chief Harriet Green in shock departure Thomas Cook shares crash amid shock departure of Harriet Green
(about 1 hour later)
Thomas Cook’s chief executive, Harriet Green, has quit abruptly after just two years in the job, during which she was credited with bringing the tour operator back from the brink of bankruptcy. More than £400m was wiped off Thomas Cook’s market value after the tour operator stunned investors by announcing the abrupt departure of Harriet Green, the chief executive credited with bringing the tour operator back from the brink of bankruptcy.
In a statement to the stock exchange, Thomas Cook said Green had left with immediate effect and that Peter Fankhauser, the chief operating officer, had taken over. Thomas Cook said Green had left with immediate effect and that Peter Fankhauser, the chief operating officer, had taken over. Fankhauser, who has worked at Thomas Cook for 13 years, survived Green’s management cull and was promoted to operations chief a year ago.
Her sudden departure shocked the City, and will also unsettle shareholders in the group. It came as Thomas Cook warned that trading had become more difficult and that growth would be slower in the current financial year. Thomas Cook shares plunged 22% to 107p, sending its market value down from more than £2bn to £1.56bn.
Shares in the group crashed 22%, to 107p, wiping more than £400m from the group’s stock market value. Her sudden departure shocked the City as Thomas Cook warned that trading had become more difficult and growth would be slower in the current financial year. Trading in Germany has weakened as consumer confidence has dropped in Europe’s biggest economy and the UK winter programme failed to fill increased capacity.
Thomas Cook’s chairman, Frank Meysman, said Green had left because the company needed someone with more travel industry experience. He said the board was unanimous that it was the right time for her to hand over to Fankhauser and that the company did not look at other candidates.
Meysman said: “It’s a different balance of requirements that is needed going forward. Knowledge of the market and implementation of the strategy that Harriet has set out is more important than continuous strategy. She loved this job tremendously but she has always been very realistic that this job will end at some point in time.”
Chris Beauchamp, market analyst at IG, said: “Investors will be right to ask questions over how her departure will affect the turnaround plan, so expect much of the price reaction today to be in connection to this.”Chris Beauchamp, market analyst at IG, said: “Investors will be right to ask questions over how her departure will affect the turnaround plan, so expect much of the price reaction today to be in connection to this.”
He added that the warning on more moderate growth next year “is a sign that the easy bit has been done”. Beauchamp added that the warning on more moderate growth this year “is a sign that the easy bit has been done”.
Green joined the travel firm from Premier Farnell, the engineering company, when Thomas Cook’s market value was £148m. After she slashed 2,500 jobs, revamped the management team and increased sales through smartphones and tablets, the company said it was now on a firm financial footing with a market value of about £2bn. Green, known for minimal sleep and high-intensity workouts in the gym at 5am, joined the travel firm from Premier Farnell, the electrical products company, when Thomas Cook’s market value was £148m. She slashed 2,500 jobs, cut debt, brought in new managers, revamped holiday packages, and increased internet sales. She was named Veuve Clicquot businesswoman of the year in May.
Green, one of the few female chief executives of a leading UK public company, said: “I always said that I would move on to another company with fresh challenges once my work was complete. That time is now. I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development.” Green, one of the few female chief executives of a leading UK public company, said in a statement: “I always said that I would move on to another company with fresh challenges once my work was complete. That time is now. I wish all of the team at this re-energised company continued success, as they move to the next phase of the company’s development.”
Her departure was announced as Thomas Cook posted an annual pretax loss of £115m, down from £213m a year earlier. Earnings before interest and tax rose 44% to £323m.Her departure was announced as Thomas Cook posted an annual pretax loss of £115m, down from £213m a year earlier. Earnings before interest and tax rose 44% to £323m.