Amid fears over COVID-19, Travelex is closing down British bureaus for approximately eight weeks or a greater amount of time. The foreign exchange firm is also in discussions for sustained access to capital with its stakeholders, Reuters reported.
Travelex said in a post, “Travelex has taken the decision to temporarily close all UK bureaus effective from Tuesday 24th March 2020.” The company also noted that “we are still able to help you with your currency needs through our Home Delivery service for all travel money purchases via our website.”
The company had suffered a ransomware attack at the end of 2019 and had a forecast impact of $30.54 million, or 25 million pounds, to its Q1 underlying core earnings. But the company was looking to mitigate a portion of the damage with its cyberinsurance.
The firm said, according to the report, “The timing of EBITDA recognition and receipt of the insurance recovery is yet to be determined.” It continued, “The outbreak of COVID-19 … is likely to worsen the position.”
Travel is among the industries most affected by the coronavirus pandemic, as the chart below illustrates.
In addition, the Finablr-owned company said it was in the midst of making an independent board to prevent overlap with its embattled parent and assuage worries from investors.
Travelex offers clients of Barclays, Virgin Money, and HSBC, among others, with foreign exchange services.
As previously reported, Finablr has said it could be at risk of collapsing, and the Financial Conduct Authority (FCA) has frozen its trading. The company said it came across undisclosed financing of approximately $100 million. As a result of that discovery, it didn’t feel confident of its financial health.
The $100 million is in checks that were written prior to the initial public offering of the company two years prior. They were possibly utilized as security for financing agreements.
A fund belonging to Mubadala, the Abu Dhabi state investor, acquired a 3.4 percent interest in Finablr per past reports.