British travel operator Thomas Cook has entered compulsory liquidation after talks with a potential buyer collapsed. The company, which is popular with travelling conference delegates, has been operating for 178 years.
An application was made to the High Court for a compulsory liquidation of the company before opening of business on 23 September, and an order has been granted to appoint the Official Receiver as the liquidator of the company.
Thomas Cook bosses say they anticipate that the official receiver will make an application to the High Court for members of AlixPartners UK LLP to be appointed as special managers in respect of the Company, to act on behalf of the official receiver.
As part of this process, a number of other Thomas Cook Group companies have also entered into compulsory liquidation, with members of either AlixPartners UK LLP or KPMG LLP (depending on the company) being appointed as Special Managers in respect of the relevant Group companies.
The operator insists that AlixPartners UK LLP will work “very closely” with the Civil Aviation Authority in the UK, to repatriate all UK travellers impacted.
Peter Fankhauser, chief executive of Thomas Cook, said in a statement: “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.
“It is a matter of profound regret to me and the rest of the board that we were not successful. I would like to apologise to our millions of customers, and thousands of employees, suppliers and partners who have supported us for many years. Despite huge uncertainty over recent weeks, our teams continued to put customers first, showing why Thomas Cook is one of the best-loved brands in travel.
“Generations of customers entrusted their family holiday to Thomas Cook because our people kept our customers at the heart of the business and maintained our founder’s spirit of innovation.
“This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world.”
UPDATE: Speaking in the House of Commons on Wednesday 25 September, travel secretary Grant Shapps said: “There was no way of guaranteeing that a £250m bailout would save the company, which posted a £1.5bn half-year loss as recently as May. Our concern is we would have thrown away good money after bad money, and still had to pay for repatriation.”
