Sep 23, 2019

Why Thomas Cook is in liquidation not administration

Nor can AlixPartners consultants ask passengers "Chicken or beef?" That, figuratively at least, is why collapsed tour operator Thomas Cook is not now in administration and still flying 757s to sunnier climes, but instead in compulsory liquidation and grounded at gloomy Gatwick. Many have been blamed for Thomas Cook holidaymakers waking up stranded on Monday morning. Banks asking would-be £450m investor Fosun for another £200m to see Thomas Cook through the winter were accused of scaring other creditors and the wider market. No, Thomas Cook's grounding is a flaw in the administration system, made worse by mismanagement. When a business reaches the scale and complexity of Thomas Cook - an interrelated airline, tour operator and retailer sustained by £1.7bn of debt - a KPMG, PwC, EY or whoever will not have the means to make it work.

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