In a dramatic turn of events, the global travel brand Thomas Cook declared itself bankrupt. The declaration of collapse of the 178-year-old travel company has resulted in lakhs of passengers being stranded. Thomas Cook is seeking around 200 million pounds of investment for its revival.
We are sorry to announce that Thomas Cook has ceased trading with immediate effect.
This account will not be monitored.
— Thomas Cook (@ThomasCookUK) September 23, 2019
The company failed to get an agreement between the stakeholders and the money providers, thus resulting in a collapse. Official statement from the group said, that “the company’s board has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect”. The statement came after the meeting resulted in a failure.
The government of United Kingdom has been making efforts to bring home around 1.5 lakh tourists who were traveling on the company’s package. The UK government has hired dozens of charter planes to fly customers home free of charge. This is one of the largest repatriation in peacetime history said an official statement from the UK government.
Collapsing of the firm has led to a loss of around 22,000 jobs globally and 9,000 alone in the UK. The collapse comes 2 years after a similar kind if case with Monarch Airlines. The Monarch Airlines collapse prompted the British government to take emergency action to return 110,000 stranded passengers, costing taxpayers some £60 million on hiring planes.