Thomas Cook Collapses, Ending 178-Year Reign in the Travel Business
Skift Take
The bankruptcy and liquidation of Thomas Cook is a monumental blow to the travel industry. The collapse of the company will continue to have ripple effects across the industry for a long time to come.
Thomas Cook, one of the most well-known and oldest brands in global travel, filed for bankruptcy early Monday UK time, ceasing operations for vacations, bookings, and flights.
“Despite considerable efforts, those discussions have not resulted in 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 company filed for liquidation to the UK High Court on Monday.
"Despite huge efforts over a number of months, and further intense negotiations in recent days, we have not been able to secure a deal to save our business. I know that this outcome will be devastating to many people and will cause a lot of anxiety, stress and disruption," said CEO Peter Fankhauser on Monday morning.
The collapse of the UK-headquartered firm, which can trace its routes back to 1841 and its eponymous founder, has left thousands of people stranded abroad with plans afoot to bring some of them home on special rescue flights.
Executives spent the weekend trying to come up an extra $250 million (£200 million) needed to complete a rescue led by its largest shareholder Fosun Tourism Group but the complexities of the deal and the amount of money involved appear to have
