Business

Brazil's travel group CVC Brasil to shut down operations of its Mexican and Colombian arm Almundo

The impacts on the results for the conclusion of this process will be mainly BRL 23 million in impairment of local assets, and BRL 3 million in legal expenses, indemnities, and others

Photo: REUTERS/Ueslei Marcelino
  • Almundo’s operations in Brazil will be transferred to Submarino Viagens;
  • The COVID-19 caused low sales volume for Almundo.

The Brazilian travel group CVC Brasil announced on Friday that it will shut down operations of its subsidiary Almundo in Mexico and Colombia, which operates exclusively in the online segment, citing low sales volume and the effect of the COVID-19 pandemic.

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The impacts on the results for the conclusion of this process, according to the tour operator firm, will be mainly BRL 23 million in impairment of local assets, and BRL 3 million in legal expenses, indemnities, and others.

According to a statement to the Securities and Exchange Commission (CVM), Almundo’s operations in Brazil will be transferred to Submarino Viagens, as the company seeks administrative, technological, and commercial synergies.

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“We estimate that the implementation of these actions will be completed in the first quarter of 2021,” the firm added.

(Translated by LABS)

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