Stock Market News: British Travel Group Thomas Cook Declared Bankruptcy


< Thomas Cook – Stock Market News > … 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 tens of thousands of stranded passengers.


Free Demo Trading Account

Trade Online Without Risk With a Free Demo Account: You Can Trade on Forex, Stocks, Indices, Commodities and Cryptocurrencies. TRY FOR FREE


The 178-year-old operator, which had struggled against fierce online competition for some time and which had blamed Brexit uncertainty for a recent drop in bookings, was desperately seeking £200 million ($250 million, 227 million euros) from private investors to avert collapse.

The news leaves some 600,000 tourists stranded worldwide according to Thomas Cook, including more than 150,000 holidaymakers seeking help from the British government to return from destinations including Bulgaria, Cuba, Turkey and the United States.

Earlier, in a statement published just after 01:00 GMT, Thomas Cook said that “despite considerable efforts”, it was unable to reach an agreement between the company’s stakeholders and proposed new money providers.

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


Thomas


The UK government said it had hired planes to fly home British tourists, in an operation starting immediately.

Launching Britain’s “largest repatriation in peacetime history”, Transport Secretary Grant Shapps added that the government and UK Civil Aviation Authority had hired dozens of charter planes to fly home Thomas Cook customers.

“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,” the government said.


Start Trading Now or Try a FREE Demo Account


Both a tour operator and an airline, the travel giant’s key destinations were in Southern Europe and the Mediterranean but it offered also holidays in Asia, North Africa and the Caribbean.

Thomas Cook chief executive Peter Fankhauser called it a “deeply sad day”, with thousands of jobs lost. “It is a matter of profound regret to me and the rest of the board that we were not successful,” he said.

“This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world,” he added in the group’s statement.


• Personal Loans Online Fast Approval •


-22,000 jobs lost – As well as grounding 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.

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

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

“Fosun is disappointed that Thomas Cook Group has not been able to find a viable solution for its proposed recapitalisation with other affiliates, core lending banks, senior noteholders and additional involved parties,” the Chinese group said in a statement to AFP on Monday.

Cabinet maker Thomas Cook created the travel firm in 1841, transporting 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, followed soon after by destinations further afield.

Thomas Cook grew into a huge operation but fell into massive debt despite recent annual turnover of £10 billion from transporting about 20 million customers worldwide.

The company’s demise comes just two years after the collapse of Monarch Airlines that prompted the British government to take emergency action and return 110,000 stranded passengers, costing taxpayers some £60 million on hiring planes.


Free Demo Trading Account

Trade Online Without Risk With a Free Demo Account: You Can Trade on Forex, Stocks, Indices, Commodities and Cryptocurrencies. TRY FOR FREE


“It’s not just been Thomas Cook that has fallen victim to overcapacity in the sector, with the collapse of a host of airlines in the past few years, with the most profile casualty being Monarch,” Michael Hewson, chief market analyst at CMC Markets UK, said Monday.


 

Support SMN.Today

… If You're Able To, Please Support SMN.Today From As Little As $5. Thank You …

$5.00


Financial Markets News: Top 5 Things to Watch This Week


Stock Market News: Airbnb Says It Plans to Go Public in 2020


Business News Today: Microsoft to Buy Back Up to $40 Billion in Stock





 






 

Advertisements


Categories: Business, News, Today

Tags: , , , , , ,

11 replies

Trackbacks

  1. British Travel Group Thomas Cook Declared Bankruptcy - BOOKS FOR YOUR CURIOSITY
  2. Global Stocks Inch Up On Trade Hopes – Stock Market News Today
  3. Philip Morris & Altria End Merger Talks – Stock Market News Today
  4. Conagra Brands Beats Profit Expectations – Stock Market News Today
  5. Tokyo Inflation Slows To 16-Month Low – Stock Market News Today
  6. Global Stocks Lifted by Hopes of More Easy Money – Stock Market News Today
  7. 29% of Americans are Considered {Lower Class} – Stock Market News Today
  8. The Number of U.S. Stocks Hitting Fresh 52-Week Highs Has Fallen Since June – Stock Market News Today
  9. Johnson & Johnson Agrees to Settle Ohio Opioid Lawsuits – Stock Market News Today
  10. Dow Drops 300 Points … Fears of a Recession Continue – Stock Market News Today
  11. U.S. to Impose New Tariffs on EU Goods – Stock Market News Today

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

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

%d bloggers like this: