Government needs to insist bailed-out banks don’t pull the plug on Thomas Cook
With a £900m financial restructuring package involving the Chinese company Fosun, Thomas Cook looked to have secured its future when at the last minute its banks, including RBS and Lloyd’s, demanded an additional £200m liquidity. These same banks were bailed out by the taxpayer to the tune of £65bn and RBS is majority owned by the state.
Brian Strutton said “It is appalling that banks that owe their very existence to handouts from the British taxpayer, show no allegiance to a great British company, Thomas Cook, when it needs help. This puts 9,000 good quality U.K. jobs needlessly at risk and puts an iconic British brand in jeopardy.
“The Government has a say in this, owning one of the key banks and still with huge influence over the other. RBS and Lloyd’s should be told by the Prime Minister to support Thomas Cook.
“If Thomas Cook goes into administration it will cost the taxpayer as much to repatriate holidaymakers as it would cost to save Thomas Cook; the Government sat on the sidelines wringing its hands when Monarch Airlines was let down by its financiers, this time Government needs to get a grip and do its bit to save Thomas Cook.”