The two businesses – as well as what was then known as the Midlands Co-operative – pooled their shop networks to create the largest high street network in the UK in 2011.
At the time the deal was expected to last “for the long term” but after five years The Co-operative Group was given the option to “put” its shares to Thomas Cook for a certain price.
In its 2014 annual report, Thomas Cook included a provision of £82 million for the acquisition of both Co-ops’ shares.
Last week the company said the liability had been reduced by £18 million but a spokesperson declined to give the new total.
Speaking after Cook announced a pre-tax annual profit for the first time in five years, chief executive Peter Fankhauser said the future of the joint venture was up to The Co-operative Group.
“We are in constant discussion because we are on a common board with them and they have a put option next year that is contractually fixed but we are not sure whether they are going to take this… because our aim is to really have a good [relationship] with them,” Fankhauser said.
“From our side there is no need and no aim to dissolve this joint venture we have with the Co-op but it’s up to them contractually.”
Fankhauser added that it was not Cook’s intention to buy the business and that he would not be looking to go out and make further acquisitions.
“We are focusing for the time being on our product improvement, on our customer focus and we have no intention for now to make acquisitions as we did long before I was chief executive.”
Peter Fankhauser
The Co-operative Group declined to comment.
Cook has a 66.5% stake in the joint venture, The Co-operative Group controls 30% and the renamed Central England Co-operative owns 3.5%.
The joint venture was one of a series of deals pushed through by former chief executive Manny Fontenla-Novoa, who left Thomas Cook in August 2011 before it was completed. Later that year the company reported a pre-tax loss of £398 million.
Over the past five years former chief executive Harriet Green and Fankhauser have overseen a turnaround and transformation of the business, which included job losses, shop closures and business sales.
