Thomas Cook

[SirGalahad]

So its estimated it will cost £600m to repatriate 150k customers, and refund those who have paid in advance.

 

[JP_]

I can't believe they lasted as long as they did. High street travel agents are always empty when I pass them, better deals online.

 

[Notch7]

Grant Shapps said this morning that Monarch cost £60 million and Thomas Cook is twice the size.....so in the order of £120m
Maybe thats just political downplaying.

Im not sure I agree with union leaders complaining the government shouldve helped.
I get the impression £200 million was just enough to cover immediate cash shortfall.
I think longer term something like a £1b financial restructuring wouldve been needed.

I blame it on Brexit

 

[JP_]

Brexit is probably partly to blame - not for the current problems, but they probably looked at it and thought, we could save them, but if people stop holidaying in Europe next year it will still die.

 

[ellal]

I get the impression £200 million was just enough to cover immediate cash shortfall.
I think longer term something like a £1b financial restructuring wouldve been needed.

A £200m guarantee was required whilst a restructuring program was sought, or assets realised and many jobs saved...

Instead 22,000 will lose their jobs, and I wonder what will happen to the pension fund?

As it stands £600m will be simply be p issed up the wall!

This will also have a massive impact on places like Tunisia, where TC almost single handedly rebuilt their tourism industry after the terrorist massacre...

Interestingly in addition to repatriation flights, the government (via the CAA) is contacting thousands of hotels trying to guarantee that they will get paid so they don't kick out tourists on to the street.

In effect they are saying, 'trust us, we are good for the money'...

I wonder what would happen should we renege on our EU financial commitments?

 

[SirGalahad]

They had sterling fixed costs and then liabilities in Euros.

Rising rents, a poor merger and business model.

 

[sodthisforfun]

Was reading last night that it's not just TC who will suffer. Many excursion and tour companies rely heavily on TC, some as much as 80%. Sad to see so many people lose their jobs.

 

[SirGalahad]

Was reading last night that it's not just TC who will suffer. Many excursion and tour companies rely heavily on TC, some as much as 80%. Sad to see so many people lose their jobs.

People are forgetting they were one of the biggest operators in Europe as well - second or third in Germany.

 

[JP_]

Didn't they run their own hotels too? Sure I stayed at a Thomas Cook hotel years ago in Mallorca. Was terrible. Lovely place though, Porto Christo.

 

[motorbiking]

They had 400M ~2013, and they almost pulled it out of the bag with 900M cash/equity swap, that was until the creditors demanded another £200m to cover their risk. It was (as of 2 weeks ago) a viable business, if it could re-structure its depts. But that kind of interest is a killer.

 

[Notch7]

Was reading last night that it's not just TC who will suffer. Many excursion and tour companies rely heavily on TC, some as much as 80%. Sad to see so many people lose their jobs.

Yes there will be a ripple affect going down the supply chain.

A lot of the smaller owners of hotels and apartments will have guests in at the moment that Thomas Cook wont have paid for and there will be future bookings all gone which they have to refill.

 

[motorbiking]

Some of them seem to have solved that issue, by robbing their guests:
https://www.bbc.co.uk/news/uk-49787563

 

[SirGalahad]

This is what NO DEAL looks like.

 

[Notch7]

Some of them seem to have solved that issue, by robbing their guests:
https://www.bbc.co.uk/news/uk-49787563

Its not right but it is understandable, the hotels wont get a penny from liquidation.

 

[motorbiking]

This is what NO DEAL looks like.

If anything was to blame it was :
- 2009 Financial crisis
- historic debt issues
- Turkey, Egypt and Tunisia unrest
- rise of airbnb
- changing consumer market

maybe a bit of Brexit with people holding off and currency, but its fundamentally about debt ratio. There is an argument that interest rates would have gone up without Brexit and these zombies would have died anyway.