Thomas Cook is on verge of collapse 
2019-09-23
More than 600,000 travelers with Thomas Cook were on edge yesterday wondering if they will be able to get home as one of the world’s oldest and largest travel companies teeters on the verge of collapse.
The company, which confirmed on Friday that it was seeking 200 million pounds (US$250 million) in extra funding to avoid going bust, is in last-ditch talks with shareholders and creditors to stave off collapse.
Sky News reported that discussions were taking place yesterday at the London-based headquarters of law firm Slaughter & May. Thomas Cook would not comment on the report.
A collapse could leave around 150,000 travelers from Britain stranded, along with hundreds of thousands of travelers from other countries.
In that scenario, Britain’s Civil Aviation Authority would likely be ordered to launch a major repatriation operation to fly stranded vacationers home, much in the way it had to when Monarch Airlines went bust nearly two years ago.
The financial difficulties are raising questions about the jobs of the 22,000 staff employed by Thomas Cook around the world, including 9,000 in Britain. The tour operator recently raised 900 million pounds (US$1.12 billion) in new capital, including from its leading Chinese shareholder Fosun. Unions and the main opposition Labour Party have urged the British government to intervene financially to save jobs if the company cannot raise the necessary funds.
Thomas Cook, which first started operating in 1841 with a one-day train excursion in England, has been struggling over the past few years for a variety of reasons. 
In May, the company reported in half-year results that it had a net debt burden of 1.25 billion pounds and cautioned that political uncertainty related to Britain’s departure from the European Union had led to softer demand for summer holiday travel. 
