You must have often heard in laughter that the concerned person or the company concerned is in insolvency, that is, the company or someone is in so much debt that they are now going to fall down.
Well, this has been the case of falling down from such a mess, which Thomas Cook, the renowned Girami Travel Group Company of Britain has faced.
Thomas Cook is one of the UK's largest companies of hospitality and tourism. The 178-year-old company merged with THOMAS COOK AG and MY TRAVEL GROUP in 2007. Since then, Thomas Cook has been serving the world.
Not only this, the company also bought Hotels4U.com's booking website in 2000 for £ 21.8 million. In March 2009, Thomas Cook finalized a deal with Octopus Media Technology to enable Thomas Cook to provide the online show on TV. In this way , Thomas Group became a renowned brand for its service worldwide. It continues to fly seven days a week and travels with about 300 passengers.
Thomas Cook is listed on both the London Stock Exchange and the Frankfurt Stock Exchange.
Thomas Cook is a UK tourism company known for providing all types of facilities to its tourists.
Such a wondrous company, but what could be the possible reasons for it to go bankrupt?
Well, let’s see that.
They say that when time runs out, the floating boat of good things also sinks…
The same thing happened with Thomas Cook. In fact, many months ago, the company had expressed the apprehension that the company was under heavy debt pressure. The company had said several months ago that due to uncertainty in the breakthrough, bookings are coming down significantly and the company is also continuously increasing debt, and the effect of all this pressure was seen on Monday, 23 September 2019.
The company's Chief Executive Officer, Peter Frankhauser, informed of the closure of the company. With this, the company was sunk into crores of debt.
The closure of Thomas Cook will have an impact on the tourists who are traveling around the world and at the same time its closure is going to have a profound effect on its employees as well.
In 16 countries of Thomas Cook, 21 thousand employees are on the verge of losing their jobs, out of which 9 thousand employees are from Britain.
If we talk about tourists, then 1, 50,000 British tourists have traveled to other countries. Recalling them is a challenge for the government and the company.
The debt on Thomas Cook is quite large. The process of sinking into the debt of the company started from the year 2016. The company incurred debt of 1.363 billion pounds on 30 September 2016, after which it increased to 1.439 billion pounds on 30 September 2017 and then it increased to 1.427 billion pounds on 30 September 2018. And it would be coincidental that in September 2019, Thomas Cook declared himself bankrupt.
As on date, the company has a debt of 1.7 billion pounds i.e. $ 2.1 billion and the company has announced closure.