China’s Fosun Acquires Thomas Cook for $14.2m
Thomas Cook’s largest shareholder, Chinese conglomerate Fosun International Limited, said on Friday, that it would be purchasing the bankrupt UK travel group for 14.2 million dollars weeks after it collapsed leaving behind thousands of holidaymakers stranded.
Owner of Club Med resorts, Fosun will also acquire the 178-year-old British tour group’s hotel chains Casa Cook and Cook’s Club.
“The acquisition of the Thomas Cook brand will enable the group to expand its tourism business, building on the extensive brand awareness of Thomas Cook and the robust growth momentum of Chinese outbound tourism,” said Fosun Chairman Qian Jiannong, adding that his company “always believed in the brand value of Thomas Cook”.
In July, as part of a rescue plan, Fosun had announced that it would be injecting 450 million pounds together with bondholders and banks that would provide Thomas Cook with the liquidity to trade through to 2020 and invest for the future. The plan collapsed.
Thomas Cook folded in September leaving behind thousands of its customers stranded, 22,000 jobless worldwide, and costing the Greek hospitality sector 315 million euros in damages.
In Greece, Thomas Cook operated hotels on Crete, Rhodes and Kos.
Combined with the newly announced direct flight by Juneyao Air from Shanghai to Athens, as well as Fosun’s previously announced plans to boost tourism flows between the two countries, Greece stands to gain from the deal.