Deathwatch: Thomas Cook shares slide as more cash is sought

22 November 2011

deathwatch They used to say: ‘Don’t just book it, Thomas Cook it’, but these says more and more of us are saying ‘For god’s sake, don’t Thomas Cook it!’ and the travel agent is in big trouble as a result.

The company’s share price has plummeted by 75% this morning after news that it is running out of cash and is in talks with banks over upping its borrowing over the notoriously sluggish Christmas season. This comes only a month after Thomas Cook announced it had nabbed a short-term £100m loan with the winter slump specifically in mind.

All of that doesn’t look like it’s going to add up to a sunny future for the company (do you see what we did there?) and the announcement of full-year results, that were scheduled for Thursday, have been postponed while they try to secure more borrowing.

If you’ve recently booked a holiday and are feeling a bit nervous in the light of these latest developments, you should be okay as all customer orders are covered by the ATOL protection scheme and similar programmes. But the news isn’t going to do anything for consumer confidence in them.

TOPICS:   Travel   Economy   Debt

11 comments

  • MrRobin
    I'm sure the threat of strike action from the Unite union has not helped matters one iota.
  • Surjit L.
    Damn thomas cook. I've been a Cookie through and through for years. Now they threaten my position at T5 Heathrow. Thomas Cook is being taken over by Amex in Heathrow. We have effectively underperformed. Obviously I'll blame the staff and not management (thats me) Head of Bureaux Operations for Manchester and Heathrow Airport. I rock. Who cares, Amex will take me on!
  • Mike
    The most worrying part if the Chief Exec quoting this: In a conference call, Thomas Cook chief executive Sam Weihagen reassured customers that it was business as usual. "We have all the protection in place as any other travel company and they should not worry," he said. He's not talking the company up like he should be with things like it's in safe hands folks, but more re-assuring people who book or have booked that under the ATOL scheme there holidays are protected.
  • captain c.
    When you can use the internet to book the exact holiday you want at less than half the price Thomas Cook charge for the same holiday, is it any wonder people are not using them (or any travel agency), any more? My mother booked me a Skiing holiday for my birthday, it cost ~ £1500 for my son and I, for 10 days skiing. The next year I booked the same holiday independently, had 14 days skiing and paid under £900. Another example, I got married in China recently; rooms at the Nanning Marriott through a travel agent were £100 per night, rooms at the Marriott booked independently were £60 per night, the travel agency tried to charge extra for internet access, the Marriott gave it for free!!!
  • Dick
    When they go bust im launching my sex tours company, Thomas Cock
  • Thomas C.
    I AM THOMAS COOK. I'M DEAD. YOU MORONS DONT SHOP AROUND. HAHAHA
  • Jolyon B.
    I suppose the novelty of being squashed into a tiny airline seat with not enough legroom for even Willy Carson and then being dumped in an apartment on the 15th floor of a high rise block (which even the most hardened residents of UK chav estates are fearful) has worn off.
  • simon
    who wants to travel with this awful company anyway - it flew with them 6 years ago and had a seat with 27" of leg pitch, it was the worst 4 hours of my life and I would never set foot an their planes again RIP Thomas cook
  • zeddy
    Don’t just book it, Thomas Cook it They're about to kick the bucket, ah, Thomas, fuck it!
  • Mike H.
    I'm too poor, I can't afford another holiday this year. My family are starving. We will just have to watch Sky on our 60" TV, maybe watch a blu-ray or 10 or maybe play some of the games we haven't opened yet on our 3 consoles and I will have to cut back to £500 each for my 6 kids. I blame the government...
  • Biggeoffc
    Jolyon & Simon have pretty much nailed it with their comments about seat pitch. We flew with them a couple of years back, London to Dalaman, Turkey. We vowed never again. Even my wife who is 5' 4" found her knees rubbing against the seat in front and I had to sit sideways to get my legs in at all and I'm only 5'10"! So much for the brace position, impossible except for children! What do they care for safety?

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