Thomas Cook collapse: German company files for bankruptcy

0
Share
An Airbus A320 of Thomas Cook Airlines takes off at International Airport in Düsseldorf, Germany, 23 September 2019
Image copyrightEPA
The German subsidiary believes that by filing for insolvency it can save its national brands

Thomas Cook’s German subsidiary has announced it is filing for insolvency in an attempt to save its national brands after the collapse of the UK parent company on Monday.

It said it was talking to the German foreign ministry as well as the travel bankruptcy insurer, Zurich, about repatriating customers. Like Condor, it has asked the Hesse state government and the federal government for a bridging loan.

Why has Germany’s Thomas Cook filed for bankruptcy?

The German subsidiary believes its brands have a future and is in negotiations with investors and hotel operators to continue in business.

Thomas Cook GmbH said it had been forced to seek insolvency to extricate itself from its (UK) parent company’s “financial tie-ups and related liabilities”.

Presentational white space

“We owe this to our long-standing customers, committed employees and other partners who have supported us so much over the years and in the last difficult weeks,” said chief executive Stefanie Berk.

Thomas Cook businesses in several other European countries are also trying to survive:

  • Polish subsidiary, Neckermann Polska, has suspended its activities and said it will file for bankruptcy
  • Thomas Cook Netherlands, which has 10,000 holidaymakers abroad, said on Wednesday it had been granted a delay on payments while action was taken to secure its future
  • Thomas Cook France has more than 9,600 customers abroad and will go to court on Thursday in an attempt to go into receivership and find a buyer
  • Thomas Cook Austria has filed for bankruptcy and has almost 5,000 customers abroad.

Founded in 1841, parent company Thomas Cook filed for bankruptcy after failing to secure emergency funding of £200m from the UK government.

In the UK, anyone who has bought a package holiday covered by the Air Travel Organiser’s Licence scheme (Atol) will have the cost refunded.

However, some customers whose future holidays have been cancelled have seen the price of replacement deals spiral.

There is also concern that local businesses will be badly affected in countries where Thomas Cook operates:

  • The Balearic Islands in Spain is set to lose millions of euros. Thomas Cook has a tax office in Palma with hundreds of employees and works with a number of local hotels
  • In Cyprus, hoteliers and the wider economy could lose €50m, according to Cyprus’s deputy tourism minister
  • The Gambia is bracing itself for a big impact on tourism, which contributes to more than 30% of its economic output
  • Turkey’s hotel federation says many small businesses depend on Thomas Cook.
Related Posts
Leave a Reply

Your email address will not be published. Required fields are marked *

Socials

September 2019
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
30