Quite correct decision in the event...TC would have burnt through that money in weeks.The Government decision has been vindicated by many in business and by the Chairman of ABTA only last week. As a company,sadly, they weren't saveable.17:10 on Sunday September 22 was the moment it became clear that Thomas Cook was going bust. The company’s chief executive, Peter Fankhauser, received a call informing him that his request for government support had been rejected. A frantic weekend of talks to save the business, involving...www.itv.com
Oh they knew Rob but the bonuses were too good to miss..how the hell do you brass necked pocket over £8m when the share price is collapsing and you know the firm is going to the wall..Hopefully those accountable tell it how it was the top brass have a lot of questions to answer. Why the heck did it take so long for them to try and save the company they must of known years in advance how bad the situation was it seems like they just turned a blind eye to the problem.
My understanding is that the package that Thomas Cook had put together would've cleared the £1.5 billion debt turning it all into equity and freeing up £150 million a year in interest payments.Quite correct decision in the event...TC would have burnt through that money in weeks.The Government decision has been vindicated by many in business and by the Chairman of ABTA only last week. As a company,sadly, they weren't saveable.
Problem with that was Fosun started to have cold feet about that deal, and said as much a while back, which Travelmole reported.. interestingly they remained very quiet during TC death throes, which I think was strange, if they had been on the cusp of a great deal...In truth I think that deal was dead and the TC board knew it.. Appealling to the Government was the last throw of the dice..and it was only right at the end... poor management over decadesMy understanding is that the package that Thomas Cook had put together would've cleared the £1.5 billion debt turning it all into equity and freeing up £150 million a year in interest payments.
Whether in the long run Thomas Cook would've survived with their business model is unknown. I do personally believe though that the government refused on purely ideological grounds because Thomas Cook isn't strategically important.
THOMAS COOK NAME TO LIVE ON AFTER FOSUN BUYS ASSETS
01 NOV 2019BY SOPHIE GRIFFITHS
Thomas Cook’s name is to live on after the brand was reportedly bought by Fosun.
Reports said the assets of the former UK travel giant would be used by Fosun to market holidays around the world, and could even see it return to the UK one day, Sky News said.
The £11 million deal includes the trademarks, domain names, social media and licences including the Casa Cook and Cook’s Club brands.
Fosun chairman Qian Jiannong told Sky News: "The acquisition of the Thomas Cook brand will enable the group to expand its tourism business building on the extensive brand awareness of Thomas Cook and the robust growth momentum of Chinese outbound tourism.
He added: "Following the acquisition, the group will focus on business expansion, using the newly acquired Thomas Cook brands to create synergies with the existing businesses of the group."
This comes after sources told the Financial Times a number of other groups were bidding for the intellectual property rights, including Tui.
Chinese conglomerate Fosun was part of the group of lenders and bondholders that were putting together a £900m rescue package before Cook collapsed.
It held an 18% stake in Cook.
I wonder if they might market TC alongside their other European purchase Club Med, with which they are doing well and sell mainly to the mainland Chinese. Although I have a sneaky feeling this was the plan all along.Unless they do a deal with a company who does. This is absolutely possible as it's no different from how Jet2holidays came about.