Thomas Cook collapses with 'immediate effect' cutting 21,000 jobs

Global travel company Thomas Cook has collapsed today (September 23) with “immediate” cease to trading.

Around 21,000 employees of Thomas Cook are now losing their jobs, and 9,000 of those are in the UK.

All of Thomas Cook’s bookings - including flights and holidays - have been cancelled. Meanwhile, its retail stores will also close with immediate effect.

Formed in 1841, the group operated in two segments: as both an airline and tour operator. The government is said to be working with the UK Civil Aviation Authority (CAA) to enable passengers abroad to return to the UK.

Today alone, there are around 16,000 people scheduled to fly back to the UK via Thomas Cook. The CAA hopes to bring 14,000 of those home tonight.

General secretary of the Transport Salaried Staffs’ Association (TSSA), Manuel Cortes, attacked the government following the collapse: “This need not have happened - the government had been given ample opportunity to step in and help Thomas Cook but has instead chosen ideological dogma over saving thousands of jobs.”

Thomas Cook had initially asked the government to provide £250m as part of a bailout for the company.

However just this weekend (September 21-22), it was placed into liquidation after such talks failed. The government has since revealed that the £250m would have only saved Thomas Cook for a “matter of weeks”.

Transport secretary Grant Shapps spoke of the bailout cash: “The company were asking for up to £250m.

“They needed about £900m on top of that and they’ve got debts of £1.7bn, so they idea of just spending taxpayers’ money on that just wasn’t really a goer.”

More follows.

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