Thomas Cook’s demise scuttles Fosun’s goal of creating a global leisure empire spanning airline, tour operator, resorts and shows
- Thomas Cook Group, which traces its root to Thomas Cook & Sons in London in 1842, went into liquidation on Monday after failing to secure £200 million to keep creditors at bay
- Fosun had already extended a £900 million financial lifeline to the UK company last month, in exchange for stakes in Thomas Cook’s airline and tour operations
Fosun’s ambition to create one of the world’s largest leisure conglomerates – comprising a marquee hotel brand, an airline, a century-old tour operator, and one of the most iconic shows on earth – fell £200 million (US$249 million) short of saving Thomas Cook Group from liquidation.
The collapse of Thomas Cook, to which Fosun offered £900 million in the form of a financial lifeline last month, weighed on the Shanghai-based conglomerate’s listed equities. Shares of Fosun Tourism, which owns the Club Med chain off luxury resorts and hotels, fell 4.4 per cent amid a declining market in Hong Kong to HK$10.06, while Fosun International the holding company fell 1.5 per cent to HK$10.30.
Still, the collapse of Thomas Cook may not be an entirely bad thing for Fosun, said VC Asset Management’s managing director Louise Tse Ming-kwong.
“It could be a burden if Fosun took control of the company,” he said.
