Troubled Thomas Cook in talks with Club Med owner for £750m rescue deal

Travel firm Thomas Cook is currently in talks with its largest shareholder to agree a deal to save the company.

The troubled travel firm, which was founded in 1841, is in discussions with Chinese company Fosun Tourism Group, which owns Club Med, to secure a capital injection to turn around the struggling business.

If successful, the deal would see the 178-year old travel firm reorganised, with Fosun to take the majority share of its tour operator arm as well as a significant minority interest in the group’s airline.

Thomas Cook employs around 21,000 members of staff, with 11 million holidaymakers expected to travel with the firm this summer.

Peter Fankhauser, chief executive of Thomas Cook commented: “The board has decided to move forward with a plan to recapitalise the business, supported by a substantial injection of new money from our long-standing shareholder, Fosun, and our core lending banks.

“While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees.”