euromoney

Tuesday 22 November 2011

Europe's second biggest tour operator Thomas Cook has announced it is in negotiations with its banks

Europe's second biggest tour operator Thomas Cook has announced it is in negotiations with its banks about its growing £900 million debt.

As a result it plans to delay the announcement of its annual results due on Thursday.

It comes just a month after the company asked the bank for £100 million credit to see it through the quiet winter trading period.

The Thomas Cook share price opened 60% down following the news, adding to the downward spiral of the shares which have slumped 80% over the past year.

 

The holiday group had already issued three profits warnings this year, resulting in its chief executive Manny Fontenla-Novoa quitting in August.

It had also merged its high street travel business with the Co-operative Travel - and there were reports at the weekend that the company plans to shut 200 shops, putting 1,000 jobs at risk.

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