Europe’s second biggest operator in discussion with banks
Confidence has been shaken and the share price has plunged in Thomas Cook as it announces that it is in negotiations with banks about renegotiating its ballooning debt of more than a billion euros. Due to the emergency negotiations, Europe’s second biggest tour operator aims to delay the announcement of its annual results, which, as reported, had been scheduled to come out out on Thursday.
The company’s share price opened 60% lower on Tuesday, adding to an 80% slump during the year. There have been several profit warnings, a costly retail merger in the UK with Co-operative Travel and the departure of a chief executive. The operator may now close 200 of its stores. However, Thomas Cook insists there is “nothing to worry about” with the bank negotiations.