On September 23, Thomas Cook Travel Group declared bankruptcy after failing to reach any agreement to rescue this long-standing brand. With 178 years of existence and development, this is a famous name and is chosen by hundreds of thousands of customers every year. However, that did not help this brand escape heavy losses leading to the situation of having to look for new investments to save the situation.
Thomas Cook is the oldest travel group in the UK.
To avoid bankruptcy, Thomas Cook had previously negotiated with many private investors to seek 200 million pounds (equivalent to 250 million USD). However, no agreement was passed, leaving the group with no choice but to close.
In a statement, a Thomas Cook representative said: "The group's shareholders and the new investors have failed to reach any agreement despite efforts to negotiate. In view of this situation, the management is obliged to take steps to repay the loans immediately."
Thomas Cook's bankruptcy will cause serious damage to workers and tourists.
As soon as the group declared bankruptcy, a series of Thomas Cook subsidiaries were forced to close. Planes were grounded, and 22,000 employees of the group worldwide (including 9,000 employees in the UK) were unemployed. In addition, an estimated 600,000 tourists using the group's services were also affected.
In particular, many tourists abroad are at risk of not being able to return home. This also leads to the largest collective "repatriation" in peacetime when the Government will have to introduce emergency policies to bring its citizens back to safety. British Foreign Secretary Dominic Raab assured that the 150,000 affected British tourists will not be "stranded" abroad.
An estimated 150,000 British tourists are at risk of being stranded abroad.
The Thomas Cook incident reminds many people of the collapse of Monarch Airlines two years ago. At that time, the British government also had to spend 60 million pounds to charter planes to bring 110,000 tourists back home, and it was the largest collective "repatriation" in peacetime in recent times, according to the government of this country. Now, the Thomas Cook incident will probably dethrone Monarch Airlines.
Thomas Cook is the oldest travel consultancy company in the UK, founded by the father of modern tourism, Thomas Cook. Thanks to his pioneering policies and tourism initiatives, this industry has become the spearhead of many countries and territories. The group's revenue used to be about 9 billion pounds per year and served 19 million customers in 16 countries around the world.
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