Feb. 2, 2003 - Club Med, the French-listed tour operator, is embarking on a new round of non-core asset disposals, as newly appointed chief executive Henri Giscard d'Estaing tries to get the troubled business under control. 

The Business has learnt that Club Med's Sonora Bay resort in Mexico was sold to local holiday operator Grupo Paradiso for an undisclosed sum last month, with further disposals expected to follow. 

Club Med owns more than 100 holiday villages in the sun and snow, but has run into serious financial difficulties over the past year, as it has failed to fill its resorts to capacity. 

The group's business model of owning its resorts, means it has little flexibility on capacity. 

Over its past two financial years, the company has lost E62 million ($67 million, UKpound 41 million) and E70 million respectively, while running up net debts of E421 million. 

Chairman Philip Bourguignon resigned in December, having failed to turn the business round. It had been hoped his strong track record as boss of Euro Disney would allow him to guide the ailing tour operator back to profit. 

His replacement, Giscard d'Estaing, who was previously general manager of the group, is now attempting to pick up the pieces, but has insisted that the group's strategy will not drastically change. 

Giscard d'Estaing will, however, steer clear of Bourguignon's idea of expanding through manoeuvring into the health and fitness club arena. The new chief executive is the eldest son of the former French president Valery Giscard d'Estaing. 

The stock lost almost 50 percent of its value last year, hitting all-time lows of just over E17 in October. It is now down about 85 percent on its March 2000 highs of more than E165 a share, trading at about E24. 

The company was back in the news this week, as its former chief executive Serge Trigano took on Boston-based consultants Bain & Co in the US district courts. 

Trigano, the son of Club Med's founder Gilbert Trigano, claims that a sensitive and highly negative report was leaked by Bain to board members at Club Med six years ago, which started a chain of events that ended in him being ousted. 

Trigano is claiming that Bain conspired with the Agnelli family, who were 19 percent shareholders in Club Med, because it was keen to win more consulting business from the Italian car manufacturer Fiat, which the Agnelli family controlled. 

Trigano still cites his departure from Club Med as the worst experience of his life, and is seeking E70 million in damages. Bain insists it did nothing unethical. The case continues. 

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