Thomas Cook

lowmans100

I understand what you are saying, but for me, it does not detract from the fact this is a private company selling what can only be considered as luxuries to those that can afford them. I have friends that have worked for various departments of TC over the years, some of which have been closed down or sold off including the currency traders, concierge services, Travelex etc.

Removing the emotional aspect of the affect on individuals, I just think there needs to be national interest and national payback for a government to bail out a private company and doing so for a company that sells holidays so it can be taken over by another private company just doesn't sit comfortably with me.

Trollslayer

Agreed, there are others who can pick up the slack.

MarkNorton1

I’ve got my fingers crossed something gets sorted, didn’t know about any issues until after we booked our family holiday to Rhodes mid October, I guess it will be done and dusted by then either way. Booked through Loveholidays but the flight is with TC, just don’t want the hassle of refunds or trying to find alternatives etc.

On a side note though reports say they need a further £200m to get out of the mess but it would cost £600m if they collapse and repatriation is required, must be in someone’s interest to avoid the later?

Trollslayer

But will it fix the underlying problem or just end up repeating this in a few years?

lowmans100

There is absolutely no way of knowing what the plans are of the company that has bid to take over TC. It is unlikely they will accept any caveats from the UK govt. on how the company is run after it has been taken over as that would prejudice any any takeover deal.

Imagine if the long term plan is to move the HQ from Peterborough to China or anywhere else in the world, then asset strip and sell the TC name to the highest bidder all at a cost of £200m to the UK taxpayer (I am just being devil's advocate).

domtheone

Exactly.  

They've already reported losses of a billion or so.

Clearly their business model is and has been in dire straights for a while.

If they do go under, others should hopefully become a bit stronger (since theres 9 Billion of sales to divi out).  

Still massive over capacity in this area (imo) and peoples holiday habits have changed substantially over the last 20 years.

Trollslayer

Time for take things to take their course.

LM1405

TC are in administration at 8am.

domtheone

Yup.

Cue Labour/Unions calling for Nationalization

domtheone

As expected.  One company ceases trading will naturally give others a temp boost.

Tui shares up 10% this morning.  IAG/Eayjet etc etc up too.