Menu Close

Wolves owners Fosun ‘disappointed’ over Thomas Cook collapse

Wolves owner Fosun said it was ‘disappointed’ about the collapse of Thomas Cook after they led a last-ditch bid to rescue the travel agent from bankruptcy.
Chinese conglomerate Fosun, which was Thomas Cook’s biggest shareholder, was to have injected £450m into the business, according to an announcement from the travel agent earlier this month.
For that, Fosun was to acquire a 75 per cent stake in Thomas Cook’s tour operating division and 25 per cent of its airline unit. Creditors and banks were to match that amount, converting their debt into a 75 per cent stake in the airline and 25 per cent of the tour operating unit.
But talks failed at the 11th hour on Sunday and the travel firm went bust in the early hours of Monday morning, leaving around 21,000 set to lose their jobs – including around 12,000 in the UK – and around 150,000 holidaymakers stranded abroad.
Fosun said in a statement: “Fosun is disappointed that Thomas Cook Group has not been able to find a viable solution for its proposed recapitalisation with other affiliates, core lending banks, senior noteholders and additional involved parties.
“Fosun confirms that its position remained unchanged throughout the process, but unfortunately other factors have changed. We extend our deepest sympathy to all those affected by this outcome.”
The two Fosun companies – Fosun International an Fosun Tourism Group – already held a combined stake of 18.1 per cent in Thomas Cook Group, making the conglomerate the British company’s largest shareholder.
Thomas Cook was Wolves’ official travel partner, while Wolves fans who have bought corporate packages through Thomas Cook Sport, including those at Molineux, have been assured they should still be able to attend the matches. Wolves say they will be contacting those affected following the collapse of the travel firm. Wolves said it was likely customers would still be offered the packages through the club but that it would not be responsible for any compensation.
Last month Fosun announced their accounts for the first half of 2019 which showed record half-year revenues of £8.54 billion and profits of £946m. Fosun first bought into Thomas Cook in 2015 – a year before buying Wolves for £30m. The Chinese investment firm also owns the Club Med resort chain and Canadian circus company Cirque du Soleil. Fosun was co-founded by billionaire Guo Guangchang and is one of China’s biggest conglomerates. It has spent billions of dollars over the past decade on healthcare, tourism and fashion companies in the United States and Europe.
Fosun has remained an active purchaser in sectors ranging from finance to pharmaceuticals. It recently bought into Tickled Media, a Singaporean online parenting information platform.