What the Thomas Cook collapse means for customers and investors | FT
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- เผยแพร่เมื่อ 7 ก.ย. 2024
- Advice and analysis from FT personal finance editor Claer Barrett and head of Lex Jonathan Guthrie on what customers and investors should do following the collapse of UK travel operator Thomas Cook, affecting those already on holiday and those about to fly. Read more: on.ft.com/2m0P75V
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Should have called themselves 'Thomas Cook Bank', then the government would have bailed them out.
Just a shitty joke really, and the governments really didn't have a choice but to bail them out, as those with mortgages or looking to take credit would be impossible and the recession would have been worse. It was really the only 'solution' and believe it or not but the government initially did not want to bail banks, but the cost was much greater of doing so.
@@denib1326 Nobody's saying they shouldn't have bailed them out. Organisations that are too big to fail should never have been allowed to get to the point where they have a stranglehold over the economy. The deregulation of banks is what caused this problem in the first place.
@@roaldholt7146 I agree also.
Lol I chuckled a bit at this comment, well said!
@Frankly Frank how was it brexit? This company has been mismanaged for decades the report even mentions it
They need Omar Baba to save them
Adxm03 What do you mean on strike?! I already pay them £2 an hour!
Haha
They need taj to lift up the mood
😂😂😂
But a volcano erupted over Bradford isn't it's
If you ask me, customers who have paid for a service not provided should be refunded first. Then investors should get whatever is left.
abrr2000, Absolutely 100% correct.
That's how the letter of the law is in the US (in most states, definitely in Delaware), but I don't know the details elsewhere. Also, that's what the guy SAID in the video. Did you watch it?
Customers, 6months serverence for lower level employees, THEN they can give it to the investors, the Execs, then the CEO gets the scraps.
of course liabilities paid before equity holders
The question is whether payables should come before long-term liabilities, and typically they do (major exception was established by the Lehman bankruptcy where I think CDS counterparties were put into the same tier as bonds rather than payables)
And once again those at the very top all ride into the sunset with gold plated pensions
They should be riding into prison with no pensions.
And then you have all those guilble people believing the oligarchy owned fake news media, that the airline went under due to strategy - yet all the shareholders cashed out together, LOL.
@@connorcook6171 cashed out, AND invested in the competition
@@brokenking5044 My point is, there was nothing wrong with how the company was operated. This is a classic case of insider trading - collapse of the Eurozone is imminent, how convenient to cash out now.
That’s the foundation of capitalism. Profiteering until the company is more or less dead 💀.
Good guys, the staff and customers, bad guys, the inept greedy bosses and the manipulative investors.
I'm genuinely intrigued why you think the investors are manipulative?
@@bishboshs I have a question for you, what caused a very old and trusted British company with 30,000 employees and a huge chunk of a very lucrative market to suddenly go bang ? investors play with peoples livelihoods by manipulating markets, who else would cause the sudden death of a large respected company?
@@dogpound7162 how does "manipulating the market" impact a company making a huge huge loss. Use facts and objective reasoning, don't just say "greedy investors, must be their fault" without explaining how
@@dogpound7162 No, Thomas Cook have been borrowing to spend for 20 years.
dog pound the reason they went bust is because of Brexit and the fall of the pound, along with a few other factors.
the big bosses over the last few years received over 20million in bonuses whilst knowing that the company was struggling. I bet they'll have massive severance packets while workers get miniscule amounts.
Yep, every damn time.
This is one of the primary failings of capitalism. Those at the top do not suffer the same repercussions of those they step on. While capitalism is a good thing, the damage that its players cause is not dealt with as those are externalities.
This is a classic case of insider trading - an economic collapse in the eurozone is imminent, so the middle class hives such as Thomas Cook, cash out of the market, in timely convenience.
Remember BHS? I guess it's a similar situation.
But £20m isn't even 10% of the £250m gap in cash, so theres a lot more to it than bosses bonuses. If they hadn't taken bonuses or even salaries for the last few years (because they knew about the issues the business would have) it would still have failed and still be their fault as the people at the top.
Good job that Great Britain is actually taking care of it's citizens for once 👍
Thomas cook staff were willing to rip me off £1900 friday to book holiday for sept 2020 and said a few times price cant be held without a hefty deposit I glad I decided to wait til monday to book
Why on earth were you trying to book on the eve of their collapse ?
Errr firstly did not believe they would be allowed to go down and thought maybe some deals going
Carl Knopp It’s been in the press for at least two months
Why would you try and book with a company that’s ready to go bust .Its been in the news for a few weeks .Madness!!!!
@@ladytron9188 no it's been in the news since February
feel sorry for everyone involved . not for the other airlines that are know taking advantage of the situation and put prices up
As sad as it is, no company shoukd ever be too big to fail. That is not a free market.
R.I.P Thomas Cook. You should not be bailed out.
Britbong lol
@Rich 91 I agree. Nothing is too big to fail.
I think the most terrifying and haunting part is when you go to their website...and it's just a screen with some text announcing their bankruptcy and url to some help.
The exact same thing can be found if you go to lehman (dot) com, which used to be Lehman Brother's website, the bank that cause the economic crisis.
The fact that a massive company, can collapse in the blink of an eye, and leave absolutely nothing behind...
you say that but you can still visit the site as it was a day before the collapse web.archive.org/web/20190919193246/www.thomascook.com/
It could have been much worse but thank god the bosses managed to get their 20 million pound bonuses out before the collapse.
1.4 billion in debt!!!, at what point did they think they could not claw this back, crazy 😲
Bosses are being unfair, making the taxpayers pay for their problems, people out there struggling to buy food, these nobs need to get their head out of their arse and show some decency
I feel bad for the workers
Feel bad for anyone who thought there holiday was ATOL protected... turns out they wasn’t protected.. 𝘈𝘛𝘖𝘓... 🌚🌚
They didnt embrace the digital game...R.I.P
Exactly my thought.
Just like blockbusters
MrNigeriaboy yes they did. I have booked all my flights with Thomas Cook online. It's the CEO's lining their pockets with bonuses
@@TheSheriffess you think just because they had a website that they were embracing digital Haha. They had stores on almost every high street trying to sell holiday packages that are much cheaper online with more choice. That's why they failed. A poor business model in this day and age.
So the company collapsed the senior management who worked minuscule hours and did zero physical labour, got their money first, people at the bottom , some didn't even receive remaining wages and thousands of people stranded and paid customers don't get a instant refund for reservations in my opinion thomas cook bosses deserve a prison sentence for fraudulent activity in the way the company dealt with its problems
Hey I feel for you bro , I have worked for these type of people all my life , until I finally managed a way to start my own business from a shed and a couple of grand, just remember working for others is like pushing a next mans wheelbarrow , whilst trying to get your own , as long as your not harming anybody do what you have to do to survive my life wasn't a 9till5 it was like a 0600 till 8pm 7 days a week with little social or spending time just to escape the corporate trap of debt and company bullying and bum licking hierarchy
I don’t condone what happened but what makes you say they worked minuscule hours?
Because execs take the piss out of your average worker so they can go home earlier
Shits been hitting the fan for them for years, too many cheaper holidays out there so was only a matter of time.
Funnily enough I think that's true I manged to save my holiday and go to jet 2 worked out I saved 800 pounds for it seems exact same holiday, same day. Just slight different times and different airport.
You can book holidays without using travel companies with atol protection there will be more travel companies going bust
It really sickens me, the poor staff on the frontline were the ones keeping the company afloat yet they'll lose their Jobs with hardly anything. While those stuck up bastards at the top are probably sipping their drinks and gainall the riches. We need a revolution.
It’s a miracle it’s been lasting this long with pre-historic business model. They are lucky to have survived this long generating profits from their past reputation and image.
I was at JFK airport last night coming from LAX on Delta. I walked by B25 where I heard people clapping. As I got closer I realized the claps and cheers were sarcastic and some of what I thought was elation were actually jeers. The passengers took video and explained to me their flight is cancelled and the company is going out of business. I feel so bad for them. People were crying and this one woman choked up as she was trying to explain to me.
Can these people please be returned at minimum expense to me the tax payer.. like.. in the luggage hold of other flights.. or.. in shipping containers... or by means of a death march?... thanks government 🙂👍..
One wonders whether 'excessive debt' (which is always presented as a financial fact of life) can be avoided by large companies - or is there an element of 'miss-selling' by financial institutions (which may benefit from companies liquidating)? It sometimes seems that the lenders and financiers are not necessarily on the side of real businesses at all. Maybe it's time to regulate to avoid excessive, hazardous levels of debt - we need a technically proficient, objective but pro-customer and pro-survival accountancy-style body - without the total subjugation to fees that the current accountancy industry suffers from.
I just went on a holiday with my step family using Thomas cook...lucky huh
credits, credits, credits, boom. what do you expect from modern economy system ?
I loved the Thomas Cook livery but sadly we won't see that again 😭
Same happened with Airtours.
Never mind the fuking customers or the stinking investors .what about the people who lost there jobs
On their last flight, they couldn’t say “I hope you fly with us again soon”
ComedyCenter Could they not? I would've thought they would've said it
I just died
iiVolky Games I am sorry for your loss
"24 hour helpline"?? I won't be surprised if that's not automated rubbish
such a shame, we used thomas cook many times through the 1980's for our holidays to europe back then. ahhhh, if i could only go back to that great era.
ravenhill sword of slayer † 1968 oh yes, the great era of miners strikes, mass unemployment, rara skirts and agadoo!
So people pay thousands months before they go on holiday to a company that basically got them on tick, isn't that what con artists get put in prison for?
The font of all garbage and how else were they meant to try and save the business?
From the day I came to uk for education to now, lots of large companies in the uk are going to close. It is the sign of bleak and it will be carry on.
welcome to brexit
@@HarryWizard Little or nothing to with Brexit! TC was folding 5 years ago. Monarch likewise! The number of smaller busineses and tech startups booming due to brexit is growing and set to rise further! does any actually give a sh1t if multi nationals, conglomerates and investor and shareholder driven companies go bust? thought not! You forget or never knew economics!
Nah, a small town in Lincolnshire has just built massive greenhouses to grow hemp & a company from Netherlands own it.
It's the internet nearly everyone now is using it and cutting out the middleman ie agency's high street shops...
@@Jafmanz Yes maybe TC was not really taken down by brexit, but soon there will be companies that suddenly collapse due to bad trade. Also are you really saying that brexit is a good thing?
A very sad and tragic situation for loyal and dedicated employee's and dedicated customers alike. For many they will reflect nostalgically, as they do, I hope they reflect in the uncertain futures and tough times ahead for the people who helped make many memories possible.
Looks like iam not going on holiday tomorrow 😭😭
The bosses are greedy and have not a single thought for the customers
minecraft admin in what way? They simply tried to save the business. Yeah they’re not 100% innocent but it’s not their fault for the most part
Thomas cook always had a special place In my heart and I just can’t believe it’s the end of 177 years of grate service. They flew above the rest 💛
NoT
Yep grate service got grated away
I guess this month was the last time I would ever go on a Thomas Cook flight in my life. Hope you do well in life and good luck to everyone in life who was affected by this incident. The company says that it is in dept. Hope it escapes it.
Never used them myself not been on holiday since 1992. What is atol?
I was going to fly to Cuba today to surprise my gf after not seeing her for 3 years bc of work, and Thomas cook is the only flight from where I’m flying from that goes to Cuba, sadly I have to wait til next year to go now... ):
Tom Callyff After 3years !
Yup pretty terrible.
Guys I’m actually so confused here
Everyone is working so hard to deliver the best service to customers they can. I cant imagine how hard it must be as customers will be understandably demanding, so all the best to the staff who lost their jobs and the people who are trying to fly people home.
I love how they r so bothered about getting the people home but when they get home they will have a job to go to but the employees have no job and no one is helping and paying them
The board seen it fit to give themselves over 20 million in bonus !
They are lying. Called that number many times they are infoming you to call the bank. It's very bad that Thomas cook didn't even emailed there customers about this. When you go to the website it's not giving any proper information. It's very stressful. I was going to holiday, and I don't know if I would be refunded my money
really feel for the poor employers losing there jobs some serious questions need to be answered
I never used Thomas Cook before as I heard negative things about them in terms of quality for their choice of hotels and transfers, but never thought they would go bust as they seemed so popular .
My family have booked a plain flight for them to go on holiday this October. Hopefully they will give us a refund 😕
The chief executives should be interrogated and investigated for the collapse of the company. Their bank accounts should also be investigated and frozen. What a bunch of scum bags. They should return their bonuses, and sent to prison.
I’m kinda sad now, because my holiday is cancelled and it was a really good looking hotel in Greece..
Huggies ALDC not as sad as the ex employees looking for another job to feed there families
Alan Smith mhm, that’s why I said kinda..
Huggies ALDC sorry I'm English didn't understand what Kinda means
Alan Smith it’s ok, it means kind of.
What is a holiday?
My entire life is a holiday. Even my dreams are a holiday.
You want some fun. It’s outside your door. On the street.
boi
All those hotels havent been paid in months - thats the real disgrace
Immediate investigation into Thomas cook CEO's bonuses, must be brought to the forefront of this disastrous collapse...Force these corrupt "scumbag" directors to hand back to customers all their losses, plus compensation for inconvenience caused to all staff & travellers !!
You can't book it, when you Thomas Cook it.
Let this be a lesson for other company’s that don’t move with the time. If you try to fleece your customers they will shop elsewhere
I've got an outstanding complaint with then. Hopefully ATOL will answer this better than Thomas Crook staff did. On the bright side the employee in question lost his job today ...feel sorry for the others though. Top bloke saddened however the £4 million he "earned" should soften the blow.
Iran did it. I saw it my self
Tbh wanted to go home to Newcastle but when I went to turkey for 2 weeks now here for another 2
My mum lost her job... we’re really struggling :(
I'm sorry for you're mum and family, I hope things get better soon.
Melanie Walker thank you, she’s currently looking for a new job 🙏🏻🙏🏻🤞🏻🤞🏻👍🏻👍🏻
Just sat here thinking about all the giant businesses that have failed over the past 20 years from the lehman brothers to now Thomas Cook. I have never seen or heard of any giant (fortune 500) company with a black CEO or executive fail.
Badly positioned executives?????? Really????? First time I heard this in England... we don't have badly positioned managers or executives here!
I demand Britain open as many brothels across the cuntri to support this economy
What about the people who were due to be paid this week and now have weeks or months of applying for the failing Universal Credit will they be fast tracked?
Rest in peace Thomas Cook
Init
Mike Sike they were a good airline :/
:(
ikr
What a state this Country is in when Thomas Cook rivals are jacking up prices to take advantage of people who have lost their holidays . I consider this to be totally immoral and they”who put up their prices” should be boycotted for years to come.
Courtesy off the monetary system we have in place where all new money is created as debt through the fractional reserve banking system, literally meaning bankruptcy is built into the system.
Rigid legacy business model hasn't been relevant in years.
can someone explain how a company like TC being operating for nearly 180 years just goes bust like that there has been some serious min-management by those CEO i hope the government orders a public inquiry this is scandelous
It's been losing money for years, plus the directors have taken £20 million out of it over the last 5 years. So sorry for the employee's and people caught up in this but how can a company losing money pay it's directors £20 million.
I booked a holiday to cos in Greece I was going in October it such a shame people have lost their jobs .
me me me me me
is that boeing 747 still available?
Everyone I've ever spoken to that's gone on holidays abroad always claim to have only paid tuppence for them.
It was common sense that these types of company’s will eventually crash. It’s so easy to book your holiday on your own and it’s cheaper without packages it’s only the old generation going for packages these days.
Welp i used to fly with thomas cook and now...... 5 years since I flew with thomas cook....... ive never had been so sad in my life
Must be hell for all those effected, including the TC staff who are losing their jobs, who no doubt have families to feed, loans and mortgages to find the money for which will cause much upset and personal trauma.The entire situation is dreadfully sad.
RIP Thomas cook
178 years old
I was meant to be going lanzarote on the 21st of October I’m gutted
Jack Shenton same here mate
I was goin 6 of october sunday to lanzarote. I guess im goin to ***k myself nowhere near lanzarote on the 6
You all can still go no ones stopping you
I hope Thomas Cook will bounce back from this and continue with business as usual
I booked with Loveholiday in February... due to fly on October 15th & got refunded today. I didn’t even call or email them to ask what was going on - brilliant customer services
I have a holiday with first choice on the 30th will this affect me?
First Choice is a completely different airline however T.C. did own hotels, money changers and other travel related industries. I wouldn’t worry but check.
Original Mattitude thank you.
Is Thomas cook up for sale in administration? As an entity which could re-emerge with new directorship and financial backers?
I feel so sorry for these innocent customers who are stranded what about the rest of use
Greed is still a sin in Bible. I am atheist, but 100% agree on this with book.
How does a company just collapse like that , no layoffs , no slowing down ?
But how was the company so neieve that they went bankrupt while so many of their customers where still on their holidays?? Surely they've violated some law by leaving their customers overseas??!
It’s risky business stepping outside your front door....!
At least I’ll have one for now
Thomas Cook Crew now
"We're sorry but you cannot fly with us again"
Damn it I invested £0.01 in that airline
comment I’m giving free 🦑
Apply for a government bailout.
you'd still loose money
Thank you guys this is the most likes I’ve ever recieved
Andrew Edward Bailey 🦑
Beavis 🦑
Here in greece even that our hotels lost 600 million euros because of Thomas cook we all were welcome and understood what british people have to deal with..i think all hotels helped everyone go back to their home safe! In addition with tunysia and spain that were asking british people to pay and locked them in their rooms... We created welcoming for strangers long time ago gyus.. but dont step on our feet in difficult times you see your friends!😉
The British Government failed to help with a £250million bail out plan so the business collapsed. Now the British Government face a £100million bill to fly everyone home and have zero chance of recovering that unlike a bail out where money could have been recovered as part of the financial support agreement. Shows somewhat incompetence of of Government minister.
Just wow. Being from the US I used their books. I think my agent in the 80s used them somehow. Really didn't know this was even coming.
Funny how this news don't mention how the Chiefs of TC get 30 millions in bonuses just few weeks before go bust, people will need to wait for ages to get their money back but this people walk out with huge bonuses and no price to pay, they should go to jail.
So don't know if it's true but a heard that the bank and Thomas Cook had an agreement but the bank asked for something like 200k more money which Thomas Cook didn't have that's why the had to declare bankruptcy. Can anyone confirm if it's true or not 🤔🤔
zombiegameruk some investment company was about to invest hundreds of millions but their lenders/ underwriters demanded in August that Thomas Cook should raise an additional 200million before they would commit. Which they couldn’t raise in time, now you are seeing the aftermath.
That last sentence deserves a big *MIC DROP*
That's what happens when you don't take rebranding seriously -the management must've thought it was funny to ask for their new logo design to be based on a sticky plaster, instead of comitting funds towards a comprehensive customer focused campaign. Clearly an investigation is called for.
My holiday is cancelled now bc of this 😭
Mine too. I hope we get our money back
So is everybody's safly
My holiday was cancelled 😑
So much regarding customers and repatriation of passengers all over the media already, to get past the repetition and onto to investor impact FF>> to @3:50 - although somewhat underwhelming.
You know the BBC new said it’ll effect more than a million, just shows the incompetence of the BBC.
Any customers that paid for a flight that isnt taking off should be refunded, period.