Eurotunnel confirms retail handover

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BAA is to hand over the management of all retail facilities at Eurotunnel passenger terminals on March 31 back to the cross-Channel company after reaching a last-minute out-of-court settlement to cut short the 15-year contract.

As revealed yesterday by travelretailworld.com, the two companies reached agreement before a High Court hearing planned for this month. BAA had initiated legal proceedings last June to recover £10.3m ($15.6m) in losses because it claimed Eurotunnel had misrepresented the business potential of its retail operations. BAA, which demanded an end to its contract started in July 1999, was particularly concerned about the effect on business post-abolition of duty-free.

In a joint statement, both companies said they had "reached a mutually agreeable settlement of contractual issues" relating to the operation of retail facilities at Eurotunnel's Folkestone and Calais/Coquelles terminals. BAA will hand over the operation of the stores in a staged process to be fully completed by 31 March.

Speaking to travelretailworld.com, Eurotunnel said it would takeover the running of the stores but had not ruled out working with another operator.

"At the moment we are not in talks with any operator, but clearly it is an option for us," said a spokesman. BAA had signed a master franchise agreement covering all specialist shops, catering outlets as well as managing tenants at each terminal through its retail subsidiary World Duty Free.