Tour operator, Thomas Cook, has announced a £425 million fundraising with shareholders in a bid to cut debt.
The firm, based in Peterborough, has also revealed details of a £1.6billion refinancing plan. The news comes at a time when trade is "encouraging" and the travel agent say they have seen a 10% reduction in the number of holidays left to sell compared with last year.
Under new chief executive Harriet Green, Thomas Cook also said it cut losses to £275.6 million for the seasonally quieter half year to March 31.
Thomas Cook made £590m loss in last financial year
Peterborough-based Thomas Cook slumped to a £590 million loss in its last financial year and is working on plans to slash costs.
As well as shutting stores, the UK's second-biggest travel company has trimmed its airline fleet and sold off hotels after it was forced to turn to its banks for an additional £200 million of loans in 2011.
Peter Fankhauser, Thomas Cook UK and Ireland’s CEO, said: “Thomas Cook is a much loved brand that needs to make the proposed changes to secure our future and provide continued employment for many thousands across the UK and better meet the needs of our customers going forward.
"It is essential that we operate with the right number of people as we move forward into the next era for our company.
“It is never easy to make decisions that impact directly on our people, but we also owe it to our customers to operate efficiently and ensure that when they book their holiday with us our administrative costs are as low as possible.
“We firmly believe these proposals will mean a better – more profitable – Thomas Cook that continues to be a major employer in the UK and offer the widest range of holidays for travellers and voyagers in the future.
"We are already consulting with our Unions and employee representative bodies to minimise the impact of these changes and I am speaking personally to all employees today to provide information and support through this period of consultation."
Grim news from Thomas Cook - 2,500 jobs going as part of restructure - some stores will close. Sources at Thomas Cook insist this is about changing the structure of the business to secure it for future, not the start of its decline: "We're trying to do it in one go."
They're cutting 195 stores from 1,069 - 2,500 staff going down to 13,000 from 15,500. Job cuts are not a massive surprise - £590m losses just before Christmas and new-ish boss making big changes.
Thomas Cook has seen a boost in sales in summer holidays as people try to escape the gloomy British weather.
The UK's second biggest travel company has its head office in Peterborough.
The group, which was recently forced to turn to its banks for an additional £200 million of loans, reported an underlying operating loss of £26.5 million in the three months to June 30 due to tough trading conditions.