U.K. tour company Thomas Cook collapses, leaving hundreds of thousands of travelers stranded

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Thomas Cook's four airlines will be grounded, and its 21,000 employees in 16 countries — including 9,000 in the U.K. — will lose their jobs.

Hundreds of thousands of travelers were stranded across the world Monday after British tour company Thomas Cook collapsed, immediately halting almost all its flights and hotel services and laying off all its employees.

The collapse of the firm will have sweeping effects across the entire European and North African tourism industry and elsewhere, as hotels worried about being paid and confirmed bookings for high-season winter resorts were suddenly in doubt.Overall, about 600,000 people were traveling with the company as of Sunday, though it was unclear how many of them would be left stranded, as some travel subsidiaries were in talks with local authorities to continue operating.

“The growing popularity of the pick-and-mix type of travel that allows consumers to book their holiday packages separately, as well as new kids on the block like Airbnb, has seen the travel industry change beyond all recognition in the past decade, as consumers book travel, accommodation, and car hire independently,” said Michael Hewson, chief market analyst at CMC Markets.

The company had said Friday it was seeking 200 million pounds to avoid going bust and held talks over the weekend with shareholders and creditors in an attempt to stave off collapse. She said while she was satisfied with the information she received from British authorities, the Thomas Cook representative had not appeared at her group’s hotel since the first rumors of financial difficulties emerged last week.

 

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