Thomas Cook, one of Britain’s best-known travel operators, has reportedly begun talks with banks, allegedly in order to increase its borrowings to help it ride out the traditionally slow winter season. The news has shocked investors and led to shares in the company almost halving in value.
Winter is always a slow time for the travel industry, but it was not previously believed that Thomas Cook was in any particular difficulty. The news comes just a couple of months after boss Manny Fontenla-Novoa left the company somewhat unexpectedly.
Some analysts argue, however, that Thomas Cook is merely taking prudent precautions to ensure that it is covered in the event of any unforeseen problems over the winter, in which case the share price drop might be a case of putting the cart before the horse.