22,000 people to lose jobs as Thomas Cook collapses Watch
This means that after 187 years, it will no longer operate having fallen into unmanageable debt, an estimated 22,000 Thomas Cook staff members will wake up to find themselves without a job. This marks the end of an era, Thomas Cook is regarded by many as a British staple.
What are your thoughts on this?
The official Thomas Cook website has been seized by the Official Receiver and this message is now displaying. This firmly marks the end for Thomas Cook. Really sombre sight.
Further to the announcement made on 20 September 2019, Thomas Cook Group plc (“the Company”) continued to engage with a range of key stakeholders over the weekend in order to secure final terms on the recapitalisation and reorganisation of the Company.
Despite considerable efforts, those discussions have not resulted in 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.
An application was made to the High Court for a compulsory liquidation of the Company before opening of business today and an order has been granted to appoint the Official Receiver as the liquidator of the Company. We anticipate that the Official Receiver will make an application to the High Court for members of AlixPartners UK LLP to be appointed as Special Managers in respect of the Company, to act on behalf of the Official Receiver, and we further anticipate that an order will be granted to that effect. As part of this process, a number of other Thomas Cook Group companies have also entered into compulsory liquidation, with members of either AlixPartners UK LLP or KPMG LLP (depending on the company) being appointed as Special Managers in respect of the relevant Group companies.
We expect that AlixPartners UK LLP will now work very closely with the Civil Aviation Authority in the UK, to effect the repatriation of all UK customers impacted by this announcement.
Peter Fankhauser, Chief Executive of Thomas Cook commented:
“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 apologise 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.
“Generations of customers entrusted their family holiday to Thomas Cook because our people kept our customers at the heart of the business and maintained our founder’s spirit of innovation.
“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 requested that its ordinary shares be suspended from listing on the premium segment of the Official List of the FCA and from trading on the main market of the London Stock Exchange with immediate effect.
It does beg the question what sort of cretins were managing the firm that they allowed such a mountain of debt to pile up though. Alas i rather doubt we'll see any heads rolling for this most stunning of **** ups as opposed to the usual result that former managers walk away with untold millions.
It highlights one of the failings of modern capitalism, namely that of rewarding abject failure.
Not surprising at all, they were having problems for ages. Also, not many people go to high street travel agents anymore, you can do everything online for cheaper
150k people stranded abroad, the biggest repatriation in peacetime in history...