Worries About Thomas Cook

Phil_Dicko

Active Member
I got a text from a mate of mine at work today saying that he'd heard rumours that "Thomas Cook were about to go bust". We're booked with Thomas Cook this year, so instantly that didn't sound like good news, particularly 5 weeks before we go.

When i got home I had a look on Google news straight away and, sure enough, quite a few stories published today involving Thomas Cook. One of them, published only 40 mins or so ago, says in the first few paragraphs that a German company that owns 52% of TC's shares is seeking financial help from the German government, which has today been initially rejected. Straight away my heart sank....

But reading on, it seems that TC have already reassured customers and staff that it won't affect them. At first I thought, "well, they could just say that anyway to calm people down." But it seems as though TC have actually explained the situation pretty clearly in their announcements today.

A Thomas Cook spokeswoman said: ...
"Thomas Cook operates completely autonomously as a financial operation. If Arcandor goes into administration, the 52% of our shares are likely to be retained by the banks, or they could be released on the open market.
"Whatever happens to Arcandor, it does not impact customers or staff at all."


http://www.forbes.com/feeds/ap/2009/06/08/ap6516039.html

http://www.travelweekly.co.uk/Artic...rcandor-collapse-would-have-no-impact-on.html

So before anyone hears the same rumours and starts to panic (like me and my mate did), our holidays are safe.
 
probably "only" arcandor ...
...a German company that owns 52% of TC's shares ...

... will go pouf -
because that slimey moron thomas middelhoff ...
9k7dky.jpg

... finally ruined it .
i could slap him in the face 24hours/day if i see this son of a B !

tc won´t be affected - maybe sold or something.
 
For what it's worth guys, you will be 100% covered for any financial outlay you've made through Thomas Cook as they're covered by ATOL.

(Part of the conditions for owning an ATOL license is that the operator pays out initally to a bond guarantee scheme that insures any passengers against, amongst many things, the company falling into administration)

That's not to say it's not a massive pain in the arse, and I'd be gutted if I thougth my hols would be in jeorpardy, but just thought it might be a little peace of mind financially

Oh, and if they do go under and you do still decide to go away, then act quick about rebooking as you and everyone on that flight will be doing similar and it can quickly push the prices up.
 
omg:
...Oh, and if they do go under and you do still decide to go away,
then act quick about rebooking as you and everyone on that flight
will be doing similar and it can quickly push the prices up.
... thomas cook NOT affected !



"...
JUNE 9, 2009,
Thomas Cook:
No Impact From Arcandor ...

LONDON (Dow Jones)--Thomas Cook Group PLC (TCG.LN) said Tuesday that Arcandor's insolvency proceedings will have no impact on customers or any of the contractual arrangements of the Thomas Cook group, adding that it hasn't had any approach over Arcandor's 52.8% stake.

-MAIN FACTS:

-Tuesday's announcement by Arcandor AG, its 52.8% shareholder, that Arcandor has applied to commence insolvency proceedings will have no impact on customers and is not expected to result in any adverse effect on any of the contractual arrangements of the Thomas Cook group.

-Thomas Cook's financing arrangements are completely independent from Arcandor's financing and are not affected by Tuesday's development.

-In accordance with the relationship agreement between Thomas Cook and Arcandor, Thomas Cook has been operated as a standalone entity, separate from the Arcandor group. As a result, there are minimal balances outstanding between the two groups.

-Trading balances owed by the Arcandor group to the Thomas Cook group arising in the ordinary course of business are less than GBP1 million. There are no non-trading balances owed by the Arcandor group to the Thomas Cook group.

-There are no cash pooling arrangements between the Thomas Cook group and the Arcandor group and the Thomas Cook group has not guaranteed any obligations of Arcandor.

-Thomas Cook will closely monitor the implications of this development in respect of Arcandor's 52.8% shareholding in Thomas Cook.

-Thomas Cook confirms that it has not had any approach and is not in any discussions in relation to the acquisition of the Arcandor stake or in relation to a potential offer for the Company.

-Arcandor's insolvency has no impact on Thomas Cook's financial position or its operational performance, nor on its management and staff.

-By London Bureau, Dow Jones Newswires; +44 (0)20 7842 9296
..."
(http://online.wsj.com/article/BT-CO-20090609-706957.html)
 
I must admit, I'm surprised Arcandor have filed for bankruptcy so quickly after yesterday's events.

But, Thomas Cook's announcements yesterday did put my mind at ease. In the end, these events are actually quite a distance away from the rumours my mate was hearing at work... Thomas Cook aren't going bust... not this summer anyway.

Thanks for the extra info, ice. Once again, a reassuring little read.
 
"...
Cook Alarm

There was concern on the island last week as Arcandor, which owns 53 per cent
of the Thomas Cook travel group, filed for bankruptcy
after the German government rejected its request for loan guarantees.

The company has owned Thomas Cook, the UK's second largest tour operator
behind Tui Group, since 2007.
In Germany it owns over 120 Karstadt department stores, a popular chain
found on most of the country's high streets.
It also owns Primondo mail-order, and Quelle catalogue business,
as well as selling financial products and athletic equipment.

The President of the Hotel Federation, Juanjo Riera, said that at the moment
there was nothing to worry about, but added he would be monitoring the situation
closely over the next few weeks.

The company, which employs around 70,000 people, asked the Government for help
after they were turned down by the banks over a refinancing package to the tune
of €650 million to cover existing loans.
However, observers were quick to point out the bankruptcy filing only covered
the retail side of the business.
Meanwhile, Thomas Cook remains the only profitable part of Arcandor,
with the firm's 52.8 per cent stake worth in excess of €1 billion.

A spokesman for Thomas Cook said there was no reason for holidaymakers
to be alarmed, and that the company was operationally and financially distinct
from its parent company.

"We've been around for 167 years and will be around for many more,"
claimed the company spokesperson. "This will have no impact on holidays -
customers should not be concerned whatsoever."

This was a view shared by the financial sector as shares in Thomas Cook closed up
ten per cent at 235.75p, following reports that German firm, Rewe,
could buy Arcandor's stake in the travel firm.

However, the collapse of the group, which puts 43,000 jobs on the line,
erupted into a bitter political fight on Wednesday as the centre-left Social Democrats
(SPD) attacked the economy minister, Karl-Theodor zu Guttenberg, for not helping
the company.
Both the minister and Prime Minister Angela Merkel justified the refusal to bail out
the company saying that it was a different case to Opel, who just weeks earlier
received help from the Government.
He explained that only companies who had been solid before the recession
would be considered for bailout money.
He continued that Arcandor had been struggling before the economic downturn.
..."
(ibiza-sun)
 
In the building I work in up London Thomas Cook have just bought a whole floor of the building and totally tricked it out with all this expensive looking furniture and computer equipment.

I doubt a company on the brink of bankruptcy would do this, unless thats the reason.. :spank:
 
Given the current World economic climate i wonder how many more Travel Companies & budget airlines will still be around come next summer?

Dave
 
First thing that a company in trouble will say......... "Everythings fine and there are no problems". They dont want to scare away potential customers.

The simple fact is that the big Tour Operators are all in trouble as holidaymakers continue in larger numbers to book independently and cut out the middle man.

This combined with a recession, poor euro exchange and the growth in popularity of the "Staycation" will increase the pressure on Tour Operators next season.

The business model that they successfully used since the 70's is slowly dying. Block booking rooms at discounted rates in cheap hotels and selling them on at a profit to package tourists.

Big tour operators also have to charter jets in advance to ensure that they can cover the dates in their brochures. This is a costly expense especially if they dont fill seats. They can only suffer losses for so long before they pull the plug.

I reckon if Thomas Cook dont have a good 2010 season then expect to see shop closures as they first try to cut costs, then if that doesnt work a liquidator may be called in.

My advise - sell your Tomas Cook stock and buy Spotlight shares
 
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Many of the shops have already closed,maybe the majority,at least in the places that I know.
All this so soon after the big mergers and re-branding etc.
I shall continue to twist & turn to get the best deal I can for what I want,this year I got (surprisingly) a couple of great ones with the big players !

But I will look at everyone,my october trip was an Easy + budget online apartment in a not so budget property !

Happy with all of it.


Is it a surprise that the couple of travel agencies that survive on the high streets are in the poorest and richest of areas ?
 
I shall continue to twist & turn to get the best deal I can for what I want,this year I got (surprisingly) a couple of great ones with the big players !


Thats what many people are doing these days. People are less inclined to part with their hard earned without looking around for the best deal first. They are more savvy with their cash.

With the vast amount of information and other options available on the Internet, booking sites like Ibiza Spotlight and villa rental companies, holidaymakers are starting to change the way they book their holidays.

Budget Airlines like Ryanair and Easyjet also make it easy and cheap for people to fly into resorts at times and dates that suit them. Plus the majority of flights dont have big delays.
 
all depends where you live in uk to get good flights.plus which hotel you fancy staying in.
me i will book with t/c for may hols and then go diy in sept.same hotel but diy in sept works better for me.i can get 11 /14 or more days.

easyjet dont run from my airport soon.plus Ryanair times are strange.
 
The buisness model that package tourist chains like Thomas Cook operate is now outdated due mainly to the internet and the range of cheaper and more flexible options available to a customer.

Package Tour operators have had their day and good riddance to them. They milked the industry for long enough with their cheap accommodation and hard sell approach on excursions and other ancillary sales.

Joe Public is a lot more computer literate and aware thesedays and not stupid enough to fall for the under occupancy surcharges and similar cash making scams that Package Tour operators employed for over 40 years now.
 
The buisness model that package tourist chains like Thomas Cook operate is now outdated due mainly to the internet and the range of cheaper and more flexible options available to a customer.

Package Tour operators have had their day and good riddance to them. They milked the industry for long enough with their cheap accommodation and hard sell approach on excursions and other ancillary sales.

Joe Public is a lot more computer literate and aware thesedays and not stupid enough to fall for the under occupancy surcharges and similar cash making scams that Package Tour operators employed for over 40 years now.

Agree. But it's the only way the British consumer can get ATOL protection. I admit I've never once in my entire life been on a package holiday. Seriously. But then I run the risk of airline and supplier failures personally without specific insurance or enhanced protection, which isn't always available.. and it's even worse now you have to buy separate tickets and can't insure for missed connections etc on multistop journeys. No-one does it :!: Try claiming against Ryanair if you land too late for your Easyjet connection and see how far you get :lol:
 
The buisness model that package tourist chains like Thomas Cook operate
is now outdated due mainly to the internet and the range of cheaper
and more flexible options available to a customer.

Package Tour operators have had their day and good riddance to them ..

"...
Thomas Cook shifts focus to exclusive holidays

Thomas Cook plans to take itself upmarket in a bid to turn its fortunes around
...
..."
http://www.telegraph.co.uk/finance/...-Cook-shifts-focus-to-exclusive-holidays.html
 
"...
Thomas Cook sells stake in Spanish group HCV

LONDON — Troubled travel firm Thomas Cook announced on Tuesday the sale of its stake
Spain's Hoteles Y Clubs De Vacaciones to Spanish leisure group Iberostar
for 72.2 million euros ($95.5 million) ...

http://www.google.com/hostednews/af...ocId=CNG.29f281d349da57cf7c0165dde5cba5ae.3d1



"...
Thomas Cook announces job cuts and shop closures

STRUGGLING travel firm Thomas Cook is expected to reveal the closure of some 200 travel shops
and 1,000 job cuts when it delivers its delayed full-year results on Wednesday
...
..."
http://www.scotsman.com/business/ma...nnounces_job_cuts_and_shop_closures_1_2002265
 
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