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Thomas Cook bosses face SCRUTINY over collapse
Thomas Cook chief executive Peter Fankhauser said he was "deeply sorry" about the firm's collapse and said the company had worked "exhaustively" to salvage a rescue deal.

The company went into liquidation on Monday under the weight of a £1.7bn debt pile. As the result, the government is having to fly home around 155,000 customers from 18 countries.

Some 22,000 jobs worldwide are at risk too, 9,000 of them in the UK.

They've privatized the profits and socialized the losses, but it won't ever, ever happen again!

Diversity is the key to economic and political evolution.
by Cat on Thu Sep 26th, 2019 at 03:59:33 PM EST
Anyone know how that debt pile originated? Exorbitant dividends and executive salaries? Leveraged decapitalisations? YOU DON'T RUN UP DEBTS LIKE THAT OVERNIGHT...

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Fri Sep 27th, 2019 at 10:56:57 AM EST
[ Parent ]
It's a mYSteRYAgott.

Diversity is the key to economic and political evolution.
by Cat on Fri Sep 27th, 2019 at 03:00:55 PM EST
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it's been carrying a lot of debt for a long time; a good decade or so.

However, after a major loss in 2011 led to a change of board, the company was back in profit by 2016/17, but instead of paying off its debt it chose to pay a large dividend to shareholders.

however, a long series of "one off disasters", volcanic eruption, hot weather, oil price rises, currency fluctuations, on-going tory government meant that eventaully they weren't able to service their debt. So the board gives themselves a big payoff and then declare bankruptcy.

Capitalism working as designed

keep to the Fen Causeway

by Helen (lareinagal at yahoo dot co dot uk) on Sun Sep 29th, 2019 at 05:09:47 PM EST
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Diversity is the key to economic and political evolution.
by Cat on Sun Sep 29th, 2019 at 08:22:19 PM EST
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I know the Irish weather is a bit unpredictable, but describing a few days of "hot weather" as a one off disaster is stretching things a bit. How was it supposed to effect bus sales in any case, or were you just using it as a metaphor?

Index of Frank's Diaries
by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Sep 30th, 2019 at 11:21:43 AM EST
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the parent of the thread was about Thomas Cook

keep to the Fen Causeway
by Helen (lareinagal at yahoo dot co dot uk) on Mon Sep 30th, 2019 at 07:05:41 PM EST
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Capitalism: from each according to their ability, to each according to how much they can grab


She believed in nothing; only her skepticism kept her from being an atheist. -- Jean-Paul Sartre
by ATinNM on Mon Sep 30th, 2019 at 02:54:38 PM EST
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