London (TAN): UK travel company Thomas Cook declared bankruptcy on Monday after a last-ditch rescue deal to save the 178-year-old firm failed to materialise.
In a statement, the company said discussion with a key stakeholders over the weekend did not reap a favourable result. Consequently, the company’s board has concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect.
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“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,” chief executive Peter Fankhauser said. “This marks a deeply sad day for the company which pioneered package holidays and made travel possible for millions of people around the world.”
An application was made to the High Court for a compulsory liquidation of the company before opening of business on Monday and an order has been granted to appoint the Official Receiver as the liquidator of the Company, the statement said. The company has requested that its ordinary shares be suspended from listing on the premium segment of the Official List of the FCA and from trading on the main market of the London Stock Exchange with immediate effect.
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Media reports said over 600,000 tourists are stranded following the development and as many as 22,000 employees are set to lose jobs.
