The travel company, Thomas Cook have been struggling for some time. The tour operator firm has just confirmed greater losses in Q2 than they had hoped and is a stark comparison against the profits in 2011.
The total losses for Q2 are said to be £26.5 million. If we compare this against the profits of the same period in 2011 which was around £20.1 million the travel company clearly has cause for concern.
Comparing the same period within a 2 year time frame displays a volatile trend so anything could happen.
They were hoping for sales form their Olympics packages to support them throughout this period, however, sales have been disappointing low.
Many companies are having insolvency difficulties and cash-flow problems at the moment in the UK and deciding which solution to take such as a company voluntary arrangement or biting the bullet and going through a voluntary liquidation can be hard. What sort of solution will Thomas Cook reach for?
A common word mentioned several times when representatives from Thomas Cook have been questioned is 'challenging'.
Let's hope that the travel firm is up to the challenge and comes out stronger on the other side.
