Thomas Cook Holiday Tours On The Verge Of Collapse Thomas Cook isfq1 currently locked in talks with shareholders and creditors at City law firm Slaughter & May. The tour operator needs to raise £200m otherwise it could fall into administration.
The British government says it has contingency plans in place to fly stranded holidaymakers back to the UK if the tour operator collapses.
Banks want the British travel company to raise extra funds because it’s financial difficulties are mounting and Transport Salaried Staffs Association union, which represents Thomas Cook staff, is urging the government to step in with a bail out.
There are currently 600,000 Thomas Cook customers on holiday in which 150,000 are British. They could be stranded and if there is no agreement, the decision to wind up the company will be taken at a Board meeting.
Holidaymakers staying at some hotels have been prevented from leaving their resorts. Some customers have reported that the hotels are asking them to pay extra money amid fears it will not be paid what it is owed by the tour operator for booking.
Thomas Cook customers have been reminded on social media that they have Atol protection – a fund paid for through industry levies – “in the event that Thomas Cook goes into administration”.
The travel firm also reassured customers on Saturday night that flights continue to operate as normal.
One of the world’s largest travel companies, Thomas Cook was founded in 1841 to operate temperance day trips, and now has annual sales of £9bn.
It employs 22,000 staff, 9,000 of whom are in the UK, and serves 19 million customers a year in 16 different countries.
The firm 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 because of Brexit.