Thomas Cook India denies the speculations of being bankrupt

Thomas Cook India has finally given a statement to put to rest the rumours and speculations against them. They have claimed that apart from the same brand name, Thomas Cook India has no correlation with Thomas Cook UK Plc that was filed bankrupt in October 2019. “Thomas Cook India is operating as an independent company since 2012 when the Fairfax acquired a stake of 77%, and till date, they continue to be the primary promoters. The only similarity that we have with Thomas Cook UK Plc is the brand name governed by a brand licence agreement which allows us the usage of the brand name until November 2024,” said Mahesh Iyer, CEO, Thomas Cook India. 

Iyer also commented on their plans for change in the brand name and architecture, “We have a few years to mull over the change the brand name despite issues concerning Thomas Cook UK. However, Thomas Cook is a 140-year-old brand and we will milk it as much as possible and we are paying a small amount for brand royalty. There is good brand equity and we would like to use it.”

Iyer further informed that China-based Fosun has acquired Thomas Cook UK Plc and it excludes the geographies of India, Sri Lanka and Mauritius. Thomas cook India claims that they are completely debt-free. Iyer clearly stated their financial status, “We make a profit of INR 100 crore every year and generate more than INR 250 crore of free cash annually. Our cash position till June 30, 2019, is INR 1,390 crore, which truly indicates that we have a strong balance sheet.”

When Thomas Cook UK Plc was declared bankrupt and their seeking bailout from the government failed, the market had a huge buzz about the problems which will begin for Thomas Cook India, whereas the statements from the company are contrary.