Thomas Cook has gone into compulsory liquidation today - not administration, as has been reported widely in the press. Our thoughts are with the employees and the holidaymakers who will be affected.
Compulsory liquidation is a court driven process, designed for the closure and breakup of businesses. On the face of it, administration might have been more sensible but presumably there was no prospect of saving anything at all?
Compulsory liquidation has become the government's preferred way of dealing with large corporate failures, in a trend beginning with Carillion. In this process, the taxpayer picks up the bill for the liquidation costs and hopes to be repaid from the assets - and this is on top of the repatriation costs which the CAA is incurring.
Help for holidaymakers is available at thomascook.caa.co.uk
Published September 23, 2019