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Thomas Cook Enters Liquidation

Travel operator Thomas Cook has entered into Compulsory Liquidation overnight, following the High Court granting an order for the Official Receiver to be appointed as Liquidator.

Insolvency Practitioners from AlixPartners have been appointed as Special Managers over the 178 year old airline and tour operator companies. Insolvency Practitioners from KPMG LLP have been appointed as Special Managers to the Group’s retail division and to its aircraft maintenance companies.

All Thomas Cook bookings, including flights and holidays have now been cancelled and all retail shops will close with immediate affect.

The collapse of the travel operator will lead to "the UK's largest ever peacetime repatriation", as arrangements are made to bring over 150,000 British holidaymakers home. It is being reported by a number of national newspapers that the cost of what is being called "Operation Matterhorn", could be £600 million. 

It is estimated that 21,000 staff are expected to be made redundant (9,000 in the UK) and over a million customers will lose future bookings.

Further to our previous article on this matter Thomas Cook was unable to secure the further funding required to save the various businesses from collapse. A statement from the syndicate of lenders stated that £1.1 billion funding requirement had proved too significant.

It is a sad day for the travel industry and Thomas Cook is estimated to employ 21,000 people in 16 countries, operates 105 aircraft and has 200 of its own-brand hotels and resorts.

The Government have released a useful guide to the situation and want to do next if you are a customer, employee or shareholder and it can be found here

NOTE: This is another high profile case in which the Official Receiver has been appointed with Special Managers brought in to assist, following Carillion and British Steel. We discussed whether this was the future of large, high profile insolvencies at length as part of our CPD Tap webcast number 104, "Why was British Steel placed into Compulsory Liquidation?"

Posted: 23.09.2019
Tags:  announcement
 


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