Holiday firm crisis
Thomas Cook’s future in doubt unless £200m funding agreed
Up to 140,000 holidaying Britons could be left stranded if tour firm Thomas Cook fails to find £200m in extra funding in order to secure its future.
There are also fears for 20,000 jobs worldwide unless it comes up with the new contingency funds. This is in addition to a £900m restructuring package from Fosun of China to be voted on next week.
Thomas Cook is Britain’s oldest travel agent and is in talks to offload subsidiaries.
Flights which have not left runways by midnight Sunday will be grounded.
Earlier this week the firm filed for bankruptcy protection in the US to avoid creditor lawsuits.
Thomas Cook is negotiating with its banks, bondholders and Fosun in an attempt to keep the rescue on track.
In May, the operator reported a £1.5bn loss for the first half of the year. It has also issued three profit warnings over the past year and is struggling to reduce its debts.
It has blamed a series of problems for its profit warnings, including political unrest in holiday destinations such as Turkey, last summer’s prolonged heatwave and customers delaying booking holidays due to Brexit.
It has also suffered from competition from online travel agents and low-cost airlines.