UK travel giant Thomas Cook declares bankruptcy


Team Udayavani, Sep 23, 2019, 10:01 AM IST

London: British travel group Thomas Cook on Monday declared bankruptcy after failing to reach a last-ditch rescue deal, triggering the UK’s biggest repatriation since World War II to bring back stranded passengers.

The 178-year-old operator had been desperately seeking 200 million pounds ( USD 250 million, 227 million euros) from private investors to save it from collapse.

“Despite considerable efforts, those discussions have not resulted in an agreement between the company’s stakeholders and proposed new money providers,” Thomas Cook said in a statement.

“The company’s board has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.”

The government said it had hired planes to fly home an estimated 150,000 holidaymakers to the UK, in an operation starting on Monday.

“Following the collapse of Thomas Cook and the cancellation of all its flights, Transport Secretary Grant Shapps has announced that the government and UK Civil Aviation Authority has hired dozens of charter planes to fly customers home free of charge,” a separate statement said, describing it as the largest repatriation in peacetime history.

“All customers currently abroad with Thomas Cook who are booked to return to the UK over the next two weeks will be brought home as close as possible to their booked return date.”

Thomas Cook chief executive Peter Fankhauser called it a “deeply sad day”.

“It is a matter of profound regret to me and the rest of the board that we were not successful,” he said.

The firm’s creditors held a marathon meeting on Sunday to try and work out a deal, followed by a meeting of the board of directors.

Reports said a collapse of the group would mean the repatriation of 600,000 tourists, including around 150,000 seeking government help returning to the UK.

Two years ago, the collapse of Monarch Airlines prompted the British government to take emergency action to return 110,000 stranded passengers, costing taxpayers some 60 million pounds on hiring planes.

As well as the grounding of its planes, Thomas Cook has been forced to shut travel agencies, leaving the group’s 22,000 global employees, 9,000 of whom are in Britain, out of a job.

Holidaymakers had already reported problems, with guests at a hotel in Tunisia owed money by Thomas Cook being asked for extra money before being allowed to leave, according to a tourist interviewed by AFP.

Chinese peer Fosun, which was already the biggest shareholder in Thomas Cook, agreed last month to inject 450 million pounds into the business as part of an initial 900 million pounds rescue package.

In return, the Hong Kong-listed conglomerate acquired a 75 per cent stake in Thomas Cook’s tour operating division and 25 per cent of its airline unit.

Thomas Cook in May revealed that first-half losses widened on a major write-down, caused in part by Brexit uncertainty that delayed summer holiday bookings.

The group, which has around 600 stores across the UK, has also come under pressure from fierce online competition.

Cabinet maker Thomas Cook created the travel firm in 1841 to carry temperance supporters by train between British cities.

It soon began arranging foreign trips, being the first operator to take British travellers on escorted visits to Europe in 1855, to the United States in 1866 and on a round-the-world trips in 1872.

 

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Titan World-Helios The Watch Showroom inaugurated in Udupi

Mangaluru: Bike-borne miscreant snatches woman’s gold chain

Man who spotted tiger lying dead in Kerala found hanging

Govt making holistic efforts for wildlife sustainability, protection: Scindia

PFI wanted to turn India into Islamic state by 2047: Maha ATS

One Indian missing, 10 others stuck but safe in quake-hit Turkiye: MEA

Gaganyaan mission: ISRO, Navy carry out crew module recovery trials


Related Articles More

Chitra Ramkrishna granted bail in money laundering case

K’taka discusses investment plans with Foxconn chairman

France’s Total puts hydrogen partnership with Adani on hold pending clarity on allegation

Digital currency has 50,000 users, 5,000 merchants: RBI

KIOCL reduces Q3 net loss to Rs Rs 33.88 cr

MUST WATCH

solutions for urination a problem

Pangala Crime News

A successful coastal farmer growing watermelons

Mahesh Joshi Interview

Success Story of Mr bean


Latest Additions

JNUTA organises festival to change varsity’s ‘Tukde-Tukde’ image

Must bring curtain down on issues concerning All India Football Federation: SC

Fear for deposits of people in banks, post offices and LIC: Mamata

Pro-Khalistani protestors snatched tear gas handgun, ammunition; tried to kill cops: Chandigarh Police FIR

Consuming nicotine during pregnancy increases risk of sudden infant death: Study

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.