Travel firm Thomas Cook has reported a worse than expected decline in full-year operating profit and said it would close 200 of its underperforming shops in Britain.
Europe's second biggest travel firm is looking to reduce its debt and restore confidence among investors.
Thomas Cook, which secured a rescue package from its banks last month, said the closures are part of a turnaround plan which will enable it to deliver annual profit improvements of £110m.
The company, which had issued a string of profit warnings and went to its banks for £200m of additional funding in November, said its operating profit for the year to the end of September fell by £58m to £304m.
In contrast, the world's biggest tour operator TUI Travel reported a better than expected full-year profit last week, boosted by strong online sales and demand for exclusive resorts.
Market expectations for Thomas Cook's full-year operating profit had ranged between £306m and £321m.
The company has been hit hard by tough trading conditions, especially in Britain, where its core customer base of families with young children has been particularly affected by tough economic conditions. It has also been affected by unrest in popular destinations such as Egypt, Tunisia and Morocco.
Shares in Thomas Cook have lost more than 90% of their value since March.
