Last week we learned that Thomas Cook owes nearly £1bn to lenders and had to raise £200m to keep itself afloat.
Thomas Cook have successfully secured extra funding with their banking investors to strengthen the balance sheet. The new deal means the company now has a £200m credit facility available until April 2013.
Thomas Cook was started in 1841 and is now Britain’s second biggest tour operator, the biggest of the High Street travel agents and sell over 22 million holidays a year. However the company has been struggling in this difficult financial market.
The company blamed low sales on the political unrest in Egypt and Tunisia and the floods in Thailand. They have said that UK bookings alone fell 30% before the updated credit agreement was reached. Lenders such as Barclays, HSBC, RBS and UniCredit, replaced the £100m facility announced in October with an additional £100m this month.
Sam Weihagen, Chief Executive, tried to reassure customers their holidays are safe with the company for a long time to come:
“Thomas Cook today is an even stronger and more confident company. You can be sure your holiday really is in safe hands with us… Our customers have trusted Thomas Cook with their holidays and travel experiences for more than 170 years… I have no doubt that we will still be here in another 170 years and beyond.”
As the company is secure again any holidays you have booked with Thomas Cook will be up-held, so feel free to go on your holiday and relax! However, if you are still concerned, Simon Calder, Travel Editor at the Independent, has given his advice on the situation here.
Do you have a holiday booked with Thomas Cook? Are you worried? Go to the comments section and tell us what you think.