Heathrow Row Over Exchange Of Currency Firms

Heathrow Airport has become embroiled in a bizarre commercial row over the withdrawal of one of the UK's biggest providers of foreign exchange services.

Sky News understands that Moneycorp, which is backed by the private equity firm Bridgepoint, is to leave Heathrow, the UK's busiest travel hub, in June, just 14 months into a five-year deal.

Its 28 outlets and staff will be transferred to Moneycorp's larger rival, Travelex, which will become the exclusive provider of currency exchange services at the airport.

The termination of Moneycorp's deal to operate at Heathrow prompted recriminations between the two parties.

In a statement issued to Sky News on Wednesday afternoon, a Heathrow spokeswoman said: "Moneycorp signed a contract in April 2014 to provide currency exchange services to passengers at Heathrow.

"After eight months they informed us that they could not honour the financial terms of the contract and served notice that they will cease trading at the airport in June of this year.

"Travelex will now be the currency exchange provider at Heathrow.

"Travelex comes with a wealth of experience in the foreign exchange market and we will work with them to offer our passengers good value for money, competitive rates and an excellent online pre-order service."

Just hours later, however, Heathrow said it was "rescinding" that statement, and issued a replacement which omitted any mention of Moneycorp being unable to honour the financial terms of its contract.

In a separate statement, Mark Horgan, Moneycorp's chief executive said the company had "resigned its contract with Heathrow Airport and will fully exit operations at each terminal by the summer".

He said: "The commercial opportunities at Heathrow did not materialise as expected and therefore the decision was made to refocus the growth of our retail business elsewhere."

Moneycorp has exclusive deals to offer foreign exchange services at five other UK airports, including Gatwick and Stansted.