Dubai – Masaader News
The oldest and the biggest UK tourism company Thomas Cook has collapsed after failing the negotiations to save the 178-year-old company, according to BBC.
Thomas Cook had secured a £900m rescue deal led by its largest shareholder Chinese firm Fosun in August, but a recent demand from its banks to raise a further £200m in contingency funding had put the deal in doubt.
The holiday company spent all of Sunday in talks with lenders trying to secure the additional funding and salvage the deal, but to no avail.
Thomas Cook has blamed a series of issues for its problems, including political unrest in holiday destinations such as Turkey, last summer’s prolonged heatwave and customers delaying booking holidays because of Brexit.
The UK Civil Aviation Authority (CAA) is contacting hotels accommodating Thomas Cook customers, who have booked as part of a package, to tell them that the cost of their accommodation will be covered by the government, through the Air Travel Trust Fund and Air Travel Organiser’s Licence scheme (Atol).