Thomas Cook in trouble due to default warning

Thomas Cook in trouble due to default warning

Analysts said the move threw into question the future of the 170-year-old firm, which provides holidays for 19 million customers each year and employs 30,000 staff.

The company has been hit hard by tough trading conditions, especially in Britain, where its core customer base of families with young children has been particularly affected by tough economic conditions.

It was also hit by unrest in popular destinations such as Egypt, Tunisia and Morocco. Shares in Europe’s second-biggest travel firm by holidays sold, were down 75 percent.
Thomas Cook India, on Wednesday, however, said financial troubles at its parent will not impact its financial position or performance.

No impact on India
“The development will have no impact on our business, people, customers, suppliers and the services we provide. We continue to operate business as usual,” the Indian firm said in a statement. “The forward bookings indicate strong demand for our products-across our travel verticals as well as foreign exchange,” it added.

The company has a current debt to equity ratio of 0.5 to 1 and is a profitable firm, it said.