Travel agent Thomas Cook faces collapse, leaving 150,000 UK holidaymakers stranded
- The travel agent is facing administration which could potentially trigger Britain’s largest repatriation since World War Two
- A source close to negotiations said the company had failed to find £200 million from private investors to avoid collapse
Thomas Cook’s 178-year existence was hanging by a thread on Sunday after the iconic British travel firm struggled to find further private investment and is now relying on an unlikely government bailout. An emergency fleet of airlines was on standby to rescue up to 150,000 UK holidaymakers.
The operator said on Friday that it needed £200 million (US$250 million) – in addition to the £900-million rescue deal secured last month – or else face administration, which could leave thousands of holidaymakers stranded and require Britain’s largest repatriation since World War Two.
A source close to the negotiations on Saturday said the company had failed to find the £200 million from private investors and would collapse unless the government intervened. But ministers are unlikely to step in due to worries about the pioneering operator’s longer-term viability, the Times reported on Saturday, leaving it on the brink of collapse and stranding up to 150,000 British holidaymakers abroad.
“We will know by tomorrow [Sunday] if agreement is reached,” the source said.
Conservative Party minister Brandon Lewis told Sky News on Sunday that it would be “inappropriate” for him to comment on the negotiations, but said that he hoped “they come to a positive conclusion”.