Business Top Stories Trending Now UK World

World’s oldest travel firm’s liquidation leaves thousands stranded globally

LONDON, UK: The world’s oldest travel firm, Thomas Cook, collapsed on Monday, leaving hundreds of thousands of people stranded around the globe.

In a statement, the firm said it was unable to reach an agreement between its stakeholders and proposed money providers, adding “it had no choice but to take steps to enter into compulsory liquidation with immediate effect.”

The company had sought €226 million ($250 million) from investors to save it from insolvency.

The travel agency said that due to the magnanimity of the crisis, “some disruption is inevitable” but the Civil Aviation Authority (CAA) “will endeavor to get people home as close as possible to their planned dates.”

The CAA said the world’s oldest travel agency has now ceased trading after 178 years in business.

The firm currently has 600,000 people abroad including 150,000 Brits, sparking the largest peacetime rescue operation in British history.

The company’s four airlines will be grounded and over 20,000 staff worldwide would be laid off too.

The Transport Salaried Staffs Association has appealed to the Government to offer “real financial support” to save the company and employees.

Most of firm’s clients are covered by the government’s travel insurance program, which makes sure that vacationers get home if a British tour operator goes under.

UK Government and the aviation regulator have drawn up a strategy to use other companies and airlines to bring Britons back home.

Thomas Cook Chief Executive Peter Fankhauser apologized for the company’s collapse, “We have worked exhaustively in the past few days to resolve the outstanding issues on an agreement to secure Thomas Cook’s future for its employees, customers and suppliers.”

“Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable,” he said, adding “It is a matter of profound regret to me and the rest of the board that we were not successful.”

“I would like to apologize to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years.”

Dear TNT Reader,

At The News Tribe, our mission is to bring you free, independent, and unbiased news and content that keeps you informed and empowered. We are committed to upholding the highest standards of journalism, as we understand that we are a platform for truth.

Apart from independent global news coverage, we also commit our unique focus on the Muslim world. In an age marked by the troubling rise of Islamophobia and widespread misrepresentation of Muslims in Western media, we strive to provide accurate and fair coverage.

But to continue doing so, we need your support. Even a small donation of 1$ can make a big difference. Your contribution will help us maintain the quality of our news and counteract the negative narratives that are so prevalent.

Please consider donating today to ensure we can keep delivering the news that matters. Together, we can make a positive impact on the world, and work towards a more inclusive, informed global society.

Monthly Subscription Annual Subscription

Visa Card MasterCard American Express Card

We want to hear your Travel Stories.

Do you have a memorable, unbelievable, or favorite travel experience? Share your story with us.