Thomas Cook collapses blaming Brexit. When will the leavers admit they've made a mistake?

[JustOneLastThing]

Another one bites the dust. Boris is silent. Thomas Cook have blamed Brexit uncertainty. 9,000 UK jobs lost. All for blue passports and 'sovereignty'. How many more companies will keel over because of this?

Thoughts? Any brexiters want to give me their views?

It's a falling tide, isn't it ? As the economy accommodates Brexit, the more exposed companies will start going bust.

TC had a few things going against them anyway, so Brexit was just the straw that broke the camels back.

Some companies will have a brief pickup (all of that money has to go somewhere) so I fully expect to hear a couple of good news stories in the next few weeks.

How will you twist it so it’s the fault of brexit ?

A factor, not the fault of. It's really not that difficult to see the difference.

Since all the travel companies have not gone bust, then you have to admit poor planning plays a part for this one company.

Do you see the logic issue there @mummmy2017

If there is a mortgage rate hike for example, everyone doesn't lose their home. And even those who do don't all lost their home at the same time. Doesn't mean it's not a factor in why someone did lose their home. Maybe they were in additional debt, poorly managing their finances. Doesn't mean the rate hike wasn't a factor.

So the usual Quitling suspects are on here desperate to find "Remoaners" saying it's all about Brexit.
It isn't, btw. But Quitlings will take my No as a Yes.

Nuance is a not a strong suit @bellinisurge which makes conversation about multiple, complex factors challenging.

Black or white.
Right or left.
Leave or Remain.

It's all tiresomely predictable. When there are massively complex political and economic issues at play.

Brexit may have led to bookings being super low around the Brexit deadlines but it's not the fault of Brexit. The travel industry has changed as a result of the Internet. 80% book online versus 20% booking by phone/in store. TC has been in trouble for a long time.

Yes TC had struggles but the point is that Brexit was a very significant factor. A factor that is so significant, that TC would have had a hugely increased chance of survival. The ref should been taken as an instruction to explore the options, rather than a fait accompli.

If sterling hadn't collapsed thereby increasing the cost of holidays, then TC might have been better able to furnish its debt.

If Brexit is the reason TC folded - reduces demand for summer hols, no one going to winter sun, political uncertainty, plus other reasons etc, why haven’t ALL the travel operators folded? Could it possibly be that Thomas Cook just has appalling customer service and just isn’t very good any more?

Im not saying a fall in the pound couldnt have impacted on Thomas Cook...
But given your a travel operator running so close to the bone that you cant manage a a drop in the pound is not a great management strategy...

If Brexit is the reason TC folded

I don't think a single person on this thread has said that. Just that Brexit could be a factor. Maybe other companies don't have the overhead, debt etc. of TC.

Every company that folds with Brexit as a factor, there will probably be other factors as well. Things don't happen in a vacuum.

Thomas Cook have been struggling for quite some time. They almost went under in 2011 - and even the most determined would find it hard to blame that on Brexit.

Manny Fontenla-Novoa presided over a decline, Harriet Green was turning it around until she left in 2014. Then they were hit by problems in Egypt.

Brexit shows up the faults in a lot of things - and a lot of people.

Personally, I blame the Redknapps

Even the guardian states "But one factor towers above others: the huge pile of debt – £1.7bn at the last count – that the tour operator has been attempting to shoulder for the past decade."
I certainly think the uncertainty over Brexit will not have helped any company that trades in EU (which a travel company does), but travel companies have been going bust for years. The rise of the internet has changed many people's holidays, and the decline of the high street has made many travel agent shops unviable.
I think there are lots of problems, and to highlight Brexit is just over simplistic.
I still went abroad this summer, but not with TC.

MrsTerryPratchett
Yes I see the logic,. 50 firms can see they need to plan, one doesn't and has too much debt , it folds.

Or it's the canary in the coal mine. First one of many companies to fold.

Given that the pound has fallen 13% against the Euro and 14% the US Dollar since Brexit and a) most of Thomas Cooks outgoings will be in those 2 currencies b) most of their income is in UK pounds, c) customers experiencing rising costs on essential spending I can see why Brexit might be partly to blame.

A lot of companies are running a debt model - why wouldn't you it is free money if you can convince supplier to be paid after you receive the money it means you don't incur financing charges which means you increase your profit margin. This is not bad management. |Most shareholders would see it as evidence of the company driving a hard bargain. You need to look at the leveraging figures not the payment terms to determine if the company is over stretched.

Mrs Terry, companies are folding every day surely woollies was that canary?? Years ago! Lehmann brothers.

My dh was made redundant and even when I've clearly stated its nothing to do with brexit... I've been told it is.

Are you saying that no companies will go under as a result of, or partially because of, Brexit @Septembersunrays

I think we are saying lots of factors were combined to create the events that caused the company to fold.

But you seem unwilling to say one of those factors was Brexit...

When your spending income as soon as you get it, before you buy the goods to supply your customers, your going to find a disruption to your customer income has an immediate effect on your business.
First we had the Egypt problem, people to scared to go, and rightly so.
Then the influx of migrants meant people avoided that area
Spain banning tourists, and the violence about tourism.
Add to this the hot summers here .
Then finally the exchange rates were the final straw, but not the root cause.

When i see european travel companies folding because of heat waves, lower consumer confidence & currency fluctuations etc then we can safely say Brexit isn't the reason.

In a company like TC, it only takes a few % points and down comes the whole pack of cards.

One thing is a certain though, a pro brexit Govt isn't going to say their policies caused this.

Though perhaps this is what Gove meant by "there will be bumps along the road" ?

But as i keep reading, its all a price worth paying, so long as some else is paying.

They nearly went bankrupt in 2011 and they haven’t moved with the times
Brexit is just a fly in the ointment.