Was there any need for the Thomas Cook fiasco?

Thomas Cook Group plc was a British global travel group. It was formed on 19 June 2007 by the merger of Thomas Cook AG and MyTravel Group. The group operated in two separate segments: a tour operator and an airline. Thomas Cook was listed on both the London Stock Exchange and the Frankfurt Stock Exchange.

How come the biggest companies with the safest sounding names keep heading for insolvency?  The fact that companies are big does not make them safe.  On the contrary they are easier for the vultures to move in on and crash.  The biggest profits are made, in fact, not by running these businesses which is hard work, but by crashing them.  All you need to do is short the shares when things look rosy, get the directors to borrow far more than they can afford to repay, even using the cash to pay dividends.  Then wait.  The debts or intentional mismanagement will bring the edifice crashing down sure enough./. And the short seller then buys back for zero gaining a 100% profit in the process.

That’s why big companies keep crashing – for the benefit of the scammers who run the corporate world.

Try to find small companies with no stocks market listing to avoid the crooks who run the financial world.  And if possible know the people.  Don’t trust big names is the lesson.  Pay special attention when new financial structures are formed, and new management is appointed, especially if their names are already associated with collapsing share prices in their previous positions.

That’s before the vultures start picking up all the assets of the bankrupted business for next to nothing.

See also

https://www.shropshirestar.com/news/business/2019/09/23/flights-cancelled-and-major-repatriation-launched-as-thomas-cook-collapses/

Pete Fairhurst –

Yes local or personal is always better if possible I think. Even if you pay a little bit more….

According to the beeb then the biggest shareholder in TCook was a Chinese company called Fosun. Majority owners Fosun were quoted as saying “We extend our deepest sympathy to all those affected by this outcome”. That deepest sympathy didn’t extend to helping stranded passengers. The bill for that will probably be shared between HMG and the Air Travel Trust [Atol fund].

So our British government and our British insurance fund clean up after a Chinese company. Isn’t globalism wonderful,,,,,

Print Friendly, PDF & Email
Facebooktwitterredditpinterestlinkedinmail

3 Responses to “Was there any need for the Thomas Cook fiasco?”

  1. pete fairhurst says:

    Yes local or personal is always better if possible I think. Even if you pay a little bit more….

    According to the beeb then the biggest shareholder in TCook was a Chinese company called Fosun. Majority owners Fosun were quoted as saying “We extend our deepest sympathy to all those affected by this outcome”. That deepest sympathy didn’t extend to helping stranded passengers. The bill for that will probably be shared between HMG and the Air Travel Trust [Atol fund].

    So our British government and our British insurance fund clean up after a Chinese company. Isn’t globalism wonderful,,,,,

    • Protestant says:

      Wow! Thanks to you and Tapestry for explaining why Thomas Cook suddenly went bankrupt, because I couldn’t understand it at all. It’s shocking that some passengers even had to sleep in the street after being locked out of their hotels and the airports! The Chinese company’s involvement is just the last straw. Our own government encouraging the Third World to asset-strip the British Isles…

    • Derek says:

      Fosun. I have Harry Beckhough listing Thomas Cook as being owned by WestLB, a 180yr old German bank that went belly up in 2012, yet Beckhough’s book was published 2014.

      I’m guessing the Chinese saw a prospect as carrion, but did they take over Cook, or WestLB? Watch this space? All beyond my ‘ken.

Leave a Reply

You must be logged in to post a comment.