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British Travel Agency Thomas Cook Folds: What You Need To Know

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British Travel Agency Thomas Cook Folds: What You Need To Know

British tour operator Thomas Cook said Monday it has "no choice but to take steps to enter into compulsory liquidation with immediate effect." 

What Happened

Thomas Cook, with a history that traces back nearly two centuries, is known for packaging hotel and other travel arrangements with its own airline. The company said it failed to secure the necessary financing to save its business.

Recent discussions failed to generate any results, and as a result, thousands of travelers have been left stranded and employees are now out of a job.

The company most recently reported a loss of 1.5 billion pounds ($1.9 billion) for the six months ended March 31, according to CNN.

The company's poor performance is due to a combination of competition from online rivals and Brexit concerns.

Why It's Important

Thomas Cook's departure from the travel industry will result in rival operators raising their prices, Jack Sheldon of Jack's Flight Club told The Guardian.

Thomas Cook operated flights to Florida, New York, the Caribbean and all over Europe and consumers can expected to see fare increases, especially around holiday time, he said. 

What's Next

Thomas Cook's London-listed stock was halted as the company proceeds with early stages of liquidation. It remains to be seen if a rival will acquire the iconic brand or if Monday's announcement marks the beginning of the end for the brand. 

Related Links:

BoE Leaves Interest Rates On Hold At 0.75% As Brexit Uncertainty Continues

Analyst: Expect Upward Trend In Pound Sterling As Britain Preps To Leave EU

Photo courtesy of Thomas Cook. 

Posted-In: Brexit cnn the Guardian Thomas CookNews Travel Media General Best of Benzinga

 

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