Thomas Cook shares plummet thanks to credit insurance scare

11 April 2012

A curiosity, tomorrowThomas 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they're looking at shares slumping by more than 6pc after it transpired that a major provider of credit insurance had withdrawn its cover for third party suppliers to the beleaguered holiday vendor.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 Thomas Cook are insisting that all this only affects a very “limited” number and no supplier has yet to withdrawn its services.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”.

We'll see.

TOPICS:   Investments   High Street News   Travel   Economy

10 comments

  • Dr. S.
    Verdammt Englisher Schwein Hunde, ist Thomas Cook ein wunderbares deutsches Unternehmen und für das Wohl des Führers Merkel werden Sie Geld mit ihm zu verbringen und Deutsch wieder groß, wie es in den 1940er Jahren war. Alle Hagel Merkel.
  • Massive C.
    Oh shit! I have my 5th holiday booked with Thomas Cook. What the fuck am I going to do now? Tell you what, it's a fucking good job I don't work, have 3 kids, 2 Audis and 3 BMW's innit? Sent from my iPhone 4
  • Mike H.
    My German isn't good, but I believe he said "Damn Englisher pig dogs, Thomas Cook is a wonderful company and German leader Angela Merkel for the good of you to spend money with him again, and German great as it was in the 1940s. All hail the Chancellor."
  • Mary H.
    I love how it says "It's time to leave" in the window top quality comedy from the depths of Thomas Cock
  • chris
    So the insurance company pulls out of providing cover at the time they could be expected to pay out....gotta love insurance companies..
  • Boris
    I can't believe you gone and done wrote this when there is a PETA pie coffin story about.
  • Wonky H.
    Pie Coffin. Pie Coffin. Nuts to your pie coffin. I'm still angry about the missed story that was the giant fox.
  • Boris
    I am as angry as you Wonky - I will never forget the disrespect shown and frequently vent my anger on my minion Mof. However; imagine a pie in the shape of a large coffin. Imagine a lovely poster of said pie outside a crematorium; ideal for warming huge, delicious pies. I am not publicly condoning the eating of giant human pies, but a man is not a real man if he does not salivate at the thought of a tasty, tasty coffin pie.
  • shoplifter
    Boris....in your capacity as mayor....are you a massive pie eater!!! ?
  • Boris
    As a man of the people I have to love pies, especially after the sorry mess made last month by lesser politicians. I shall defend my subject's rights to eat pies until the last moist crumb of shortcrust has been wiped of their hairy chins. I hear, from my HP sources, that Red Ken will pretend to like pies and then go and throw it all up into his vivarium for his 'children'.

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