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Thomas Cook

from a guardian article in nov 2013 " The company, started by its eponymous founder in 1841 to transport teetotallers to temperance meetings in the East Midlands, came close to bankruptcy two years ago and was forced to renegotiate debts of almost £900m." with high debt levels the writing was on the wall years ago
 
skelton said:
from a guardian article in nov 2013 " The company, started by its eponymous founder in 1841 to transport teetotallers to temperance meetings in the East Midlands, came close to bankruptcy two years ago and was forced to renegotiate debts of almost £900m." with high debt levels the writing was on the wall years ago
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As far as I understand it, it has managed to refinance its debts twice before, but not on this third occasion. I agree, this has been coming for a while.
 
There will be a string of hotel and resort bankruptcies across the Mediterranean following this. Apparently TC's terms of trade were payment six to eight weeks in arrears, and many hotels etc. were exclusively TC. It will be devastating for local economies heavily reliant on tourism and associated service industries.
 
Especially as many of them will be all inclusive deals so little money direct from the tourists. And two peak months of that not paid...
 
I find myself wondering why the government did not stump up the money, having done so a £800.000.000. bail out was on the cards, already done and dusted, buy all accounts, how much will it now cost the government to sort this mess out, hiring planes, paying off debts,re busting customers and off course now with 10,000, people out of work paying social security, peoples rents, not getting council tax, and everything else that comes with being out of work, what will be the real bill, far more than the £200,000,000, i guess, and of course the knock on effect, it's a pity they were not a bank,,,
 
Another bailout was unlikely to save the company. It was drowning in debt....folly to imagine that more debt could sort it out. Now if a sum of money was proposed to facilitate an orderly wind down that might be different, but business never seems to work like that.

The US has the chapter 11 protection provisions that can help out in such cases, allowing companies to reorganise whilst still trading. Nothing quite the same here and of course TC had large overseas operations across many jurisdictions.
 
richgilb said:
Been on R4 all morning. BBC I think has not mentioned Brexit at all in the reporting and stream of associated interviews.
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Indeed.

What seems to have done for them according to industry people is failing to move with the times and foolishly sticking to the outdated "brochure" package deal style holiday from 20-30+ years ago. Sounds like they had it coming and a deal would have only delayed the inevitable.
 
JensenHealey said:
Another bailout was unlikely to save the company. It was drowning in debt....folly to imagine that more debt could sort it out. Now if a sum of money was proposed to facilitate an orderly wind down that might be different, but business never seems to work like that.

The US has the chapter 11 protection provisions that can help out in such cases, allowing companies to reorganise whilst still trading. Nothing quite the same here and of course TC had large overseas operations across many jurisdictions.
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They got chapter 15, Chapter 11 for non US companies, in the US on Friday.
 
I still cannot understand why anyone booking or buying anything these days does not put it, or at least some of it on a Visa or MasterCard credit card.
 
Spike said:
I still cannot understand why anyone booking or buying anything these days does not put it, or at least some of it on a Visa or MasterCard credit card.
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This is really a required way nowadays for anything online, also never use Paypal to buy goods from any online retailer unless you want to kiss goodbye to section 75 protection.
 
Bob McC said:
Any different from anyone else?
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Totally different from perhaps 30 companies I deal with. Even amazon pays up after 2 weeks. I think they are the slowest. Mostly the big companies make me pay in advance for their stuff and pay me a bit late for my stuff. But nobody pays me 6-8 weeks after they got my products or the money for my products and I never pay anyone later than 30 days. I only get 30 days credit from other SMEs and couriers, never from any of the other corporates I work with.

So there you go, Bob. It is and can be different.

Support SMEs. Bollocks to the corporates. Using your muscle to force a longer line of credit than 30 days is unethical for something like a holiday.
 
Staff recieved notification by text at 4am this morning to report to place of work, spouse of teacher at wife's school lost his job today.
 
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