Thomas Cook shares plummet thanks to credit insurance scare
Thomas Cook have had a lousy 12 months and now they're looking at shares slumping by more than 6pc after it transpired that a major provider of credit insurance had withdrawn its cover for third party suppliers to the beleaguered holiday vendor.
This is the toughest the 170-year-old company has had it to date and they're now trying secure a new financing deal from lenders. Things are so bad that the company was forced into reassuring customers that their existing bookings are fine, despite the fact that insurance behemoth Euler Hermes had stopped cover to some Thomas Cook suppliers.
Credit insurance protect suppliers (independent travel agencies and websites that sell Thomas Cook holidays) should the operator go belly up. Thomas Cook are insisting that all this only affects a very “limited” number and no supplier has yet to withdrawn its services. YET.
Thomas Cook said in a statement: “This has zero impact on Thomas Cook customers. We confirm that no product has been removed from sale and no supplier has stopped trading with us. We are a large Group. This would affect only a very limited number of third party travel providers to Thomas Cook in the UK.”
The company added that, despite numerous reports to the contrary, they are now doing "just fine”.