After it entered into compulsory liquidation in September of this year, British global travel group Thomas Cook is now making a comeback under a new owner.
The world's oldest travel agency will reportedly return to business within this month following its acquisition by Chinese firm Fosun Tourism. The China-based firm also owns Club Med.
Thomas Cook, which operates as an airline and a tour operator, had collapsed in September, leaving more than 21,000 worldwide employees without jobs. During its collapse, the company had around 600,000 customers, with 150,000 from the UK, who were left stranded abroad. The collapse had resulted in the UK's largest peacetime repatriation as the country struggled to get its citizens back home.
Fosun Tourism, which held a major stake in Thomas Cook prior to its collapse, had tried to negotiate a refinancing scheme with negotiators to keep the company afloat. However, when negotiations failed, the company was forced to enter into a compulsory liquidation. Fosun tourism then decided to submit a bid to fully acquire the company, which has just now been approved.
In its approved bid, Fosun will be purchasing Thomas Cook for $14.2 million. As part of the buyout, Fosun will completely be taking over Thomas Cook's brand name, including its hotel brands Cook's Club and Casa Cook.
Fosun's chairman, Qian Jianong, had mentioned that the acquisition should revitalize the struggling company as it takes advantage of the rapid growth of Chinese outbound tourism.
Fosun also plans to leverage the company's extensive brand popularity to help it get back to profitability. Qian mentioned that he had always believed in the brand value of the company and he hopes that the merger will help it get back on its feet. Reports citing sources close to the matter have revealed that Thomas Cook may be relaunched as an online-only travel agency.
Thomas Cook's collapse was partly blamed on its ambitious expansion plans aimed to offset its losses due to stiff competition from online rivals. Prior to its closure, the company had over 500 brick-and-mortar stores in the UK. During its liquidation, Thomas Cook's rival Hays Travel decided to buy all of the company's stores at bargain prices, while retaining around 400 of its employees.
After its collapse, Thomas Cook's stocks halted trading on the London Stock Exchange and the Frankfurt Stock Exchange. It has not yet been made clear if the stock will resume trading once the brand relaunches under Forsun Tourism. Thomas Cook ceased trading on the exchanges on September 23, 2019.
