UPDATE: Thomas Cook financial collapse

“These insolvency proceedings do not involve the continental and Nordic businesses.”

The UK Thomas Cook businesses are now under the control of the official receiver who has appointed AlixPartners and KPMG as special managers to oversee the liquidation, and in the case of AlixPartners, to work with the business to assist the UK Civil Aviation Authority on repatriation of existing customers on holiday.

Current information from the management of Thomas Cook…

“Negotiations on the planned recapitalisation of Thomas Cook Group have failed. Therefore, Thomas Cook GmbH is forced to switch to emergency management.

Traveling on the 23rd and 24th of September can not be guaranteed. Any sale of travel is stopped. We are currently finalising options. Should these fail, we are forced to file for bankruptcy for Thomas Cook GmbH, Thomas Cook Touristik GmbH and Bucher Reisen & Öger Tours GmbH and possibly other companies.

We will contact guests with departures on September 23 and 24 as soon as possible. Please refrain from calling our own Call Centres. The organiser Aldiana is not affected by this bankruptcy.

As part of an open letter to staff the Thomas Cook CEO outlines that the company’s nordic and continental businesses were not affect and will continue to trade.

CEO Peter Fankhauser wrote an email to staff explaining that the failure occurred despite “fierce negotiation”.

“It is with a heavy heart that I write this message to you. I deeply regret to inform you that after many months of fierce negotiation we have failed to find the support required for the continued future of the Thomas Cook Group.

I know you will find this incredibly difficult to digest – as I do. However, I want you to know that the team and I explored every avenue and beyond to save this business.

These insolvency proceedings do not involve the continental and Nordic businesses.

The coming weeks are going to be extremely difficult. However, I know I can rely on you all to behave in the same exemplary way you have always done in times of crisis.

Shortly, you will receive invitations to relevant townhalls and team meetings that will be supported by our HR colleagues and professionals from AlixPartners or KPMG. It has been an honour and my great privilege to work with all of you for the past 20 years.

I am so proud of everything you have done to keep our customers at the heart of everything we do; your dedication and expertise is the reason why Thomas Cook will always be one of the best loved brands in travel.

Thank you for all of your support. I truly wish you all the best for your future.”

CEO Thomas Cook, Dr Peter Fankhauser