Thomas Cook | Crippling debts & high exec pay: Why did Thomas Cook sink?

September 23 2019 marked a tragic and sad day in the world of business, as travel operator Thomas Cook collapsed after last-minute attempts to save the 178-year-old firm failed.

While many holidaymakers were left stranded abroad, around 22,000 former staff members woke up to the news that they would no longer have a job.

Attributed to large debts and its high street focus, Thomas Cook was said to be a poor candidate for survival according to the Transport Secretary Grant Shapps. As such, the Government chose not to bail out the tour operating firm when they pleaded for £250million to save it from going under. Luke Hildyard, Director of the High Pay Centre, told HR Grapevine: “Paying millions to a company that has ultimately failed is completely inappropriate and hugely undermines public trust in business.

"Many of Thomas Cook's problems were to do with wider economic forces changing the shape of the travel industry. Arguably the company could have done more to anticipate and respond to these changes, but equally some people have argued that the Board were faced with impossible challenges.”