A Chinese company known as Fosun has bought the Thomas Cook. The cost of the acquisition is reported to be ₤11 million. This marks a drastic change of fortunes for what was reputed to be the oldest global tourism firm in existence and one of the most famous.
The multi-million-pound deal also includes the Cook’s Club and Casa Cook hotel brands. As a result of this deal, Fosun can now make use of Thomas Cook websites, trademarks, software and social media accounts in most parts of the globe.
Too Many Cooks Spoil The Broth
Fosun was the biggest shareholder at Thomas Cook. It also played a big role in the recent rescue deal for the firm that failed to pan out. It is as well the owner of varied businesses like Club Med and the Wolverhampton Wanderers FC, an English Premier League Club with a devoted following.
The collapse of Thomas Cook came about as a result of intense competition from a rising plethora of rivals. This the company sought to counter by expanding through takeovers and acquisitions that were financed by huge loans it was soon unable to repay.
The speedy collapse of Thomas Cool triggered a rush to repatriate almost 200,000 thousand holidaymakers on tours and vacations hosted by the company. This is reputed to be the largest ever peacetime repatriation.
The UK branch of the company has since been acquired for ₤6m by a firm known as Hays Travel. This is run by John and Irene Hays and is based in Sunderland. The couple intends to rebrand the UK shops of Thomas Cook with the name of their family firm.
The liquidation process has led to a sell-off of bits of Thomas Cook. The company’s Nordic branch, for example, is being sought after by a billionaire Peter Stordalen, who made his money in real estate. A deal might be finalized soon.
Fosun Seals The Deal
The brand name deal was announced recently. It marks the end of Fosun’s fruitless attempts to shore up Thomas Cook. Back in August this year, Fosun helped propose a bailout worth ₤900 million that would have given Thomas Cook all the energy and resources it needed to retake its place in the global tourism sector.
Fosun itself offered to pump in hundreds of millions of pounds to shore up the company. This was however contingent on the firm securing more funds from either the government of the banks. This was not possible, leading to the implosion of the firm. Check out the proposed £900m bailout in August here.
The company known as Thomas Cook came into being in 1841. It was founded in Derbyshire by a cabinet maker whose name matched those of his firm and whose first customers were temperance advocates taken a dozen miles from Leicester to Loughborough.
Fosun has since released a statement confirming their acquisition of the Thomas Cook brand name. They were also effusive in praising the company and announced their intention of leveraging their new acquisition to deliver improved services and more.