The leading British travel group,Thomas Cook, collapsed due to a heavy debt leaving many bookings, flights, and holidays cancelled leading to a large-scale panic amongst its clients. Many holiday-goers were left stranded causing the British government to charter planes to transport them back. The government also decided to fund the travels of the present vacationers through a special insurance scheme after some were briefly barricaded in a hotel in Tunisia. The bankruptcy of the 178 year old travel company dealt a heavy blow to the European tourism industry.
“Although a deal had been largely agreed, an additional facility requested in the last few days of negotiations presented a challenge that ultimately proved insurmountable," said Chief Executive Officer Peter Fankhauser in a public statement. It publically extended their apologies to all those who were affected. The company also requested the government to bail them out which was refused because it would have to use a massive amount of taxpayer money.
The firm, which is the world’s oldest travel group, was set up in 1841 to pioneer the delights of a European vacation. They slowly started expanding their offerings and branches all over the world. The downfall of the company is a result of many factors such as the unavailability of funds and Brexit being some.