Days after UK travel agency Thomas Cook ceased operations and left tens of thousands stranded, its German subsidiary has also filed for insolvency. Restructuring efforts are underway to get the firm back on its feet.
Germany’s Thomas Cook GmbH, a daughter company of the UK’s Thomas Cook, filed for insolvency in Germany, its representatives said on Wednesday.
The subsidiary said they were “forced” to take the step in order to disengage themselves from “financial entanglements and liabilities” after the UK’s Thomas Cook filed for insolvency earlier this week.
Tens of thousands of travelers were left stranded when the company unexpectedly ceased operations on Monday.
Several subsidiaries across the EU were also left scrambling after the parent company’s demise. Thomas Cook’s Polish arm has also announced it was insolvent, local authorities said.
The UK government said they would operate over 70 flights on Wednesday to bring home some 16,500 people that had been left stranded due to the company’s collapse.
In total, the UK Thomas Cook had about 600,000 abroad when the news of its insolvency broke early on Monday. Britain’s Civil Authority described the repatriation effort as the biggest since World War II.
Loan for Condor but not for Thomas Cook GmbH?
Another Thomas Cook subsidiary in Germany, Condor, previously said they were granted a €380 million ($418 million) government loan to keep them afloat. The management of Thomas Cook GmbH also applied for a bridging loan.
However, the talks with the German government had “unfortunately not led to a short-term solution,” said company chief Stefanie Berk.
Thomas Cook Germany achieved 2017/18 revenues of €3.8 billion ($4.2 billion) in Europe’s largest economy, more than 40% of the group’s total revenues.
German subsidiary wants to go its own way
The company has halted all its trips since Monday. It was not immediately clear what the move would mean for some 140,000 people currently traveling with the subsidiary or its brands Neckermann, Öger Tours, Air Marin and Bucher Reisen.
The German Thomas Cook said their business was “profitable, but long burdened by the weak business of Thomas Cook in the UK and by Brexit.” The company added they would restructure in order to be able to run the business on their own.
“The overall positive feedback from our talks during the last few days makes us confident that traditional brands such as Neckermann Reisen, Öger Tours and Bucher Reisen would have a chance to go back to business soon,” the company representatives said.