In the aftermath of Thomas Cook’s collapse on Monday, its German and Polish subsidiaries announced on Wednesday, that they too were entering bankruptcy proceedings and ceasing operations.
The UK travel operator’s German subsidiary, Thomas Cook GmbH, filed for insolvency in Germany, claiming it was “forced” to do so in order to steer clear of “financial entanglements and liabilities” following Monday’s news.
Representatives of the German unit said plans were under way to restructure and return to business and that together with the foreign ministry, insurers and partners was working to get some 140,000 German customers home.
“It was confirmed to DRV that Zurich Insurance will take on expenses agreed between Thomas Cook Germany and operators, such as hotels and airlines,” the German Travel Association (DRV) said on Wednesday.
In Poland, meanwhile, Thomas Cook’s subsidiary Neckermann Polska, also announced on Wednesday, that it was insolvent. Currently, some 3,600 travelers have booked trips abroad through Neckermann Polska.
In efforts to disengage from the news of their parent company’s demise, a number of Thomas Cook arms across Europe are issuing announcements reassuring clients that they are still in operation.
Nordic subsidiaries said they would be continuing operations. Thomas Cook’s Finnish arm Tjäreborg went ahead with flights on Tuesday, as did Ving, Spies, Globetrotter and Thomas Cook Airlines Scandinavia.
Condor Still Flying
In the meantime, German lawmakers pledged to release a bridge loan of 380 million euros to support German carrier Condor, another Thomas Cook subsidiary, to meet its cash needs for the next six months.
The German airline, which employs 4,900 people, said it would be taking legal action to separate itself from parent company liquidation proceedings in efforts to operate as an independent business.