British travel company Thomas Cook, one of the largest and oldest tour operators in the world, declared bankruptcy on Monday, 23 September. The forced liquidation was announced after unsuccessful attempts to attract financing from private investors.

Read Also: Timeline of Thomas Cook Collapse. Largest Evacuation Since WW II

The British government is currently taking steps to bring home some 150,000 Thomas Cook customers who are currently traveling.

Short:

  • Thomas Cook has had problems for several years; fails to attract 227€ million from private investors.
  • The British government is taking steps to bring home 150,000 Thomas Cook customers. For this step dozens of aircraft have been leased; some customers will also return to the UK with regular flights. It is mentioned that this will be the largest evacuation of people in British history since World War II.
  • Thomas Cook customers will not be charged for coming back to the UK.
  • Insurance companies will take care of bringing Thomas Cook’s German customers home.

With the Bankruptcy of Thomas Cook, all reservations made through this company have been canceled.

 

The German government has announced that insurance companies will take care of bringing Thomas Cook customers back. Although Thomas Cook has stopped flights, Thomas Cook-owned German airline ”Condor” continues its flights. Condor has asked the German Government to provide it with an emergency loan to enable it to continue its flights. Worldwide, around 600,000 people currently travel on trips organized by this company.

Thomas Cook’s statement states that the decision on forced liquidation was taken by the company’s board of directors. The announcement of the liquidation of the company came from Peter Frankhauser, CEO of Thomas Cook:

“We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook’s future for its employees, customers, and suppliers. Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable.”

 

“It is a matter of profound regret to me and the rest of the board that we were not successful. I would like to apologize to our millions of customers, and thousands of employees, suppliers, and partners who have supported us for many years. Despite huge uncertainty over recent weeks, our teams continued to put customers first, showing why Thomas Cook is one of the best-loved brands in travel.”

“This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world.”

The company has had problems for several years, but the situation has worsened dramatically in recent months, that can be related to an upcoming Brexit.

 

The tourism company, which began its operations 178 years ago, tried to attract £ 200 million, or EUR 227 million, from private investors, but these efforts failed.

Thomas Cook, with its own fleet of aircraft, had an annual turnover of around £ 10 billion, or about EUR 11 billion, and carried about 20 million customers a year. Thomas Cook suffered a loss of EUR 1.7 billion in the first half of this year. , but the company has total debts of about one billion euros. Thomas Cook offered destinations to Maldives, Thailand, and China but mainly offered trips to Mediterranean resorts.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.