Thomas Cook parent company files for bankruptcy
Fears raised for future of Thomas Cook after German parent company files for bankruptcy
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Tuesday, 09, Jun 2009 01:22
Fears have been raised for the future of Thomas Cook after its parent company filed for bankruptcy in Germany.
Arcandor has a 52 per cent stake in the tour operator. Its decision to file for bankruptcy follows the German government's refusal to grant the holding company €650 million in state aid.
The organisation, which employs around 50,000 people, said it would now be unable to securing refinancing on debt payments owed at the end of the month.
Arcandor also owns the Karstadt department store chain in Germany. Trading in the company's shares on the Deutsche Börse was suspended on Tuesday.
However, Thomas Cook has been quick to defend its position – claiming in a statement only last week to be "completely ring fenced" from Arcandor.
Interest from potential buyers – including Germany’s Rewe Group – has also seen shares in the tour operator increase seven per cent in value today – up to 229 pence per share at 12:52 BST.