Thomas Cook: Will the group make a successful comeback?

Thomas Cook collapses

After collapsing earlier this year, Thomas Cook is set to come back as an online travel agent.

The group is attempting to secure approval from the UK’s Civil Aviation Authority. The group collapsed after a huge debt mountain, which led to the repatriation of 150,000 UK holiday makers.

A source has said that the group is “very keen to be up and running by Christmas. It’s when people’s thoughts turn to summer holidays, and there is likely to be a lot of pent up demand because of this year’s coronavirus cancellations.”

Fosun is a Chinese brand that owns Thomas Cook and wants to revive the travel group. It has declined to comment.

Shares in the group were trading at just below 150p last summer, however, a series of profit warnings meant that before collapse the price was trading at much lower. Analysts at Citigroup bank described the travel firm’s shares as “worthless” last year before the group went down.

Fosun has now yet finalised plans of a relaunch amid the UK government plans to introduce further travel quarantines.

At the time of Fosun’s purchase of the group, Fosun chairman Qian Jiannong said: “The group has always believed in the brand value of Thomas Cook.”

“The acquisition of the Thomas Cook brand will enable the group to expand its tourism business building on the extensive brand awareness of Thomas Cook and the robust growth momentum of Chinese outbound tourism,” he added.

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Safiya focuses on business and political stories for UK Investor Magazine. Her interests include international development, travel and politics.