Business Presenter, BBC Radio 4 Today programmeFor Thomas Cook’s unfortunate staff, customers and shareholders, history has come full circle. Eight years ago the company lurched perilously close to the edge of insolvency after trading turned sour. It was pulled back from the brink by an emergency loan from a group of banks led by Royal Bank of Scotland – ironically the same bank whose demand for extra money appears to have sunk the company this time.
As well as weak trading, the company’s big problem in 2011 was too much debt – about £2bn when the pension deficit was included. It tried to put its borrowing problem behind it in 2013, with a £425m fundraising from shareholders. This money was meant not only to deal with the balance sheet, but also to pay for an organisational overhaul led by a charismatic new chief executive, Harriet Green. Her reign lasted just over two years before she was replaced by Peter Fankhauser.
After the immediate repatriation and staff problems have been resolved, one question remains – will Thomas Cook live on in some form? The brand, one of the most famous in world travel, should be worth something. The obvious buyer would be Fosun, the Chinese conglomerate that was the British company’s largest shareholder. But they, and other buyers, may conclude the messy nature of the weekend’s collapse may have blighted the brand irretrievably.
Thank god that the boss got his £20m bonuses.....phew..
I just saw RBS's name mentioned in conjunction with the collapse. Probably best to take a look at their conduct in all this, then.
Not another BrexitDividend? WakeUp BlackSwan StopBrexitSaveBritain
At least it happened before October 31, after Brexit and the stranded wouldn't be allowed back in!
Embarrassing that remoaners are using this as an excuse to blame Brexit, this has been a study case for years in credit management, long before Brexit. Surprised it lasted this long, right move by Gov not stepping in. Feel for those affected but this is all down to bad management
Any chance your reporter in Palma could stop saying he is reporting from Parma? 🤔
Brexshit bonus?!
A nightmare
The gathering storm ☔️
Their own fault. Capitalist pay structure and bonuses like the bankers. Then they want a bailout haha.... i feel so bad for all employees as not their fault and it is disgraceful this has happened to them but £20million bonuses were never gonna keep a company afloat.
So any families involved in this have taken their children out of schools illegally?
As another canary falls dead and lies on the mine floor, most will ignore and write it off as a one off. This is only the latest (symptom) in a Global problem (disease) that is decades in the making.
It’s a German owned company many of the customers are German and Dutch what are the German and Dutch governments doing ?
GretaThunberg will be pleased....
Just. I.
Is that not the firm who payed the Ceo 99mill as a bonus, IDIOTS
Interesting to see how little the UK govt values the 9000 British Thomas Cook jobs. If they were a steel producer or other industrial company there would be uproar, Corbyn would be demanding govt cash to bail them out! But hardly a squeak from any of them. Airline jobs ignored!
A massive decrease in carbon dioxide emissions. Well done lads!
Thomas Cook only have themselves to blame didn't move with the times. Still sad though just like it was when Woolworths went to the wall
How is this Brexit! It's a badly run company, anyone with an ounce of savvy will look online for the best deals. Budget airlines, companys like Jet2 and Airbnb have taken away bookings. Tui will be next...
gorkem_ekal arsenlupen80
They announced £1.2 billion dept in May, this didn't put people off?
welcome to brexit world..
The directors wont be out of pocket that's for sure
PhilippaBBC And already other travel companies are profiteering by putting up prices: Holiday booked with Thomas Cook in April: Now £500 increase today with other travel companies for the same holiday
Another bill to add to the eu cost. As the uk government can't help the way they need due to eu regulations.
I recall going in their shop 4 years ago, Thomas Cook flights and same hotel and dates was 4K cheaper through Expedia ! I couldn’t believe it, showed the employee who was dumbfounded too ! My husband teaches and prices so high in summer hols,sad but they weren’t competitive
First choice is rubbing their hands
Brexit, the gift that keeps on giving
Don’t just book it!
If only ThomasCook was an offshore, tax dodging Conservatives donor or a stately home owned by the family of lazy , arrogant, tax dodging sponger Jacob_Rees_Mogg . Then this wouldn’t need to happen. BalanceBritain ! coming for them all 1/11/19 . RIPThomasCook
Thomas Cook staff are opening up stores to help customers following the collapse of the travel company this morning.
No longer a travel company now a stay put company in liquidation
That’s the present status of U K today?
TOO LATE !
Add it to the Brexit bill. Well done Brexiteers 👏👏
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