Thomas Cook woes deepen as payment firm holds on to cash

Thomas Cook woes deepen as payment firm holds on to cash

Thomas Cook woes deepen as payment firm holds on to cash
Card acquirers have drafted in advisers to assess their exposure to the 178-year-old tour operator

Payment firms are seeking to hold on to millions of pounds of customers' money owed to Thomas Cook Group in a move which underlines the financial pressures afflicting the 178-year-old tour operator.

According to Sky News they've learnt a payment intermediary which works with Thomas Cook in the Nordic region - a significant part of the company's operations - is in talks to extend the period for which it retains holidaymakers' cash from two days to several weeks.

A number of other card acquirers are understood to have retained Deloitte, the accountancy firm, to advise them on their exposure to the business, which runs to hundreds of millions of pounds.

Credit card and payment firms typically seek to extend the period within which they retain customers' cash if they have concerns about a company's financial health.

In Thomas Cook's case, the Nordic situation is likely to have an impact on its short-term cashflows.
The latest developments come after a grim week for Thomas Cook, which is Britain's oldest and largest independent tour operator, with more than 20,000 staff and 21 million annual customers.

On Thursday, it reported a half-year loss of close to £1.5bn, the bulk of which stemmed from a £1.1bn goodwill writedown relating to its 2007 merger with MyTravel.





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