Updated: Oct 5, 2019
This British Airline was here for 178 years the oldest business in the world and holidaymaker. It will be missed by many who used and worked for the company and their services, and many will try to make sense of what happened.
Meaning, they started in 1841 and survived 2 major World Wide Wars and countless natural disasters, changes through times and progresses, innovations and trends so what on earth could have happened.
However, sad and terrible its countless staffs worldwide are facing unemployment, early retirement, but I read that people receiving pension from Thomas Cook will continue to receive their pension and other staff are entitled to insolvency payment and redundancy leave capped at £525 if you were made redundant after the 6th/04/19 click on the link to go to the UK government about how to claim redundancy/insolvency payment. You can use Mary our business tool calculator to calculate your statutory redundancy leave it works with the £525 capped it does not take into consideration any payment calculation before 6th/04/19.
The good news is the 150 000 holiday maker stranded will be brought back to the UK and if you want to know more here a link to a BBC article full of useful information.
Girlfridayz view on Thomas Cook Collapse
We conducted research into the collapse of this company it transpired that Thomas Cook was in trouble back in 2011 due to the impact of a volcano eruption in Iceland which forced thousand of travelers to cancel their holiday and knocked on the company share price down.
You would think as a responsible and accountable company they would have applied saving cost for everybody in an attempt to recover that massive knocked due to mother nature and hold up on bonuses until the share price picks up. You would think they were good at doing that they cut 2800 jobs after merging in an attempt to save money and they live very long more than a century and a half.
What we think happened bad executive was hired and people at the top were not good people and bad management killed them. Here, what we think about at Girlfridayz, they could not do saving cost it would have been terrible not to give outrageous bonuses to the top brace, so instead, they paid off Mr. Fontella-Novea Chef Executive £1.2 M in bonus for meeting his target cutting 2800 jobs following the merger with My Travel.
Despite 40% of investors voted against the pay off in the summer weeks before a £200 M rescue deal was struck with banks. A mighty foolish, stupid move which like a domino caused their downfall in 2019 eight years down the line. It's true the saying when people see huge money they have blinkers on and clouded thinking and has fool they start thinking money would be available forever.
Also, Thomas Cook most recent Chef Executive raked in close to 30 M while at the company in pay. It is a classic case of greediness from bosses, recklessness, and complacency probably thinking we will survive we are top of mind, we big in the game, we got spare cash, a lot of investors, bank helping us out, the gov will help us out, well known and barely any marketing, we did not hear them on radio ad, or TV ads or even online ads, they promoted themselves mainly on their shop window on the high street.
What a shame they forgot the basic core asset of marketing a company should do even if you are the giant of the world in your industry. They should have taken a cue on Mc Donald or Amazon and countless other huge companies that take marketing seriously and the 7ps of Marketing are used daily to ensure they not forgotten. These businesses have the right strategies and tactics for sustainability through time and a disaster plan in case big trouble happens.
Thomas Cook is crippled with debt left, right and center even if they had many bookings the money coming in was not enough to outweigh the debt of the borrowed money to repay, couple with countless staff to pay and other obligations, their enormous running cost, plus debt mounting kill them and now in administration what a shame when egocentricity, greed, coupled with bad management is in charge of a piece of history and mighty inspiration in term of business sustainability through time.
The UK government did not think bailing them out with a 250 M was a good bet and refused their request as it would not have been enough to rescue the company plus it would have been tax-payer money if they had said yes.
Thomas Cook went bust in 2011 and is colossally in debt due to poor decisions taken by bad greedy complacent management teams dating back to its merger with My Travel in 2007. The heatwave in 2018 led to a reduction in bookings, combined with the weakness of the pound and Brexit fears, pushed it over the edge.
It is also a strong reminder that when you run a business you need to think of lowering your cost even if that means though time ahead so you can survive, and implementing saving cost is mighty important and though decision is to be made in order to survive in the future, even if it means cutting down salary payment and no bonuses until business dealing get better.
Because freight is real either the weather or the government, your competitors you need to stay level headed and strong in your decision how difficult it might be to remain through the century. Use Hazel our business credit card calculator which can help you manage your spending on a business credit card which considers borrowing.
It seems to me Thomas Cook forgotten all the above and pay themselves handsomely at the cost of the company despite warning and all the hit the company taken they did not care and acted selfishly and irresponsibly, lack of accountability and serious loss of business acumen 12 years of neglect from the fat cat at the top thinking they would be bailed out again because they've received 200 M from banks 2011. Due to their recklessness countless people live are upside down, unemployed, stranded and facing early retirement.
We would love to know your thinking on this business failure which could have been avoided if good management was at the top. Comment away this our heartfelt opinion at Girlfridayz and it is a crying shame, devastating and terrible and we so sorry for the people affected.
Our deepest sympathy goes to the people who are affected and we pray that you will be alright and recover from the loss you suffer plus get the money due to you and that the 150 000 customers return in their home safely.