About 600 shops selling tourist products on the main European shopping streets were closed.
After the announcement of the bankruptcy of the oldest British tour operator Thomas Cook, about 600 shops selling tourist products on the main shopping streets were closed. The business of one of the largest players in the world market of organized tourism collapsed after it became known that the company could not agree on the restructuring of debts with creditors.
After the announcement of the termination of Thomas Cook's operations, all flights and trips were canceled. In particular, about 150 thousand clients of the company from Great Britain were left on foreign trips without support. And about 21 thousand of the company's employees all over the world lost their jobs. The government and the Civil Aviation Authority launched a program to return the company's customers to their home countries from September 23 to October 6.
The company was founded in 1841 by entrepreneur Thomas Cook. According to recent data, it served a total of about 19 million people a year, working in 16 countries around the world. The company's portfolio also included its airline, about 200 hotels with 40,000 rooms and other assets.
Recently, the business has been under severe pressure amid various unfavorable economic and political factors. Also, competition with online agencies and low-cost operators harmed the company.
It was expected that Thomas Cook would be able to avoid bankruptcy in case of signing a deal of 900 million pounds sterling with the Chinese Fosun. As a result of unsuccessful negotiations with creditors, as well as after the refusal of assistance from the UK government, the company decided to close the business.
Thomas Cook's capitalization on the London Stock Exchange fell from £440m to £69m in the last six months. Fosun Group, which owns 18% of the company, offered an investment of £950 million in exchange for 75% of the tour operator and 25% of the TC airline, but the deal was not completed due to "insurmountable reasons." In the statement of the group of creditors of TC it was noted that despite all efforts of the interested parties, the need for financing for 1.1 billion pounds sterling for the restructuring of the company was too significant.
Experts agree that one of the most famous brands in the travel market, despite its exceptional value in the past, may completely cease to exist, as its image has been irreparably damaged as a result of the collapse of the company.