UK giant Thomas Cook folds

A Thomas Cook jetliner at Manchester Airport in Northern England. AFP

London, United Kingdom (AFP) — British travel group Thomas Cook on Monday declared bankruptcy after failing to reach a last-ditch rescue deal, triggering the UK’s biggest repatriation since World War II to bring back tens of thousands of stranded passengers.

The 178-year-old operator, which had struggled against fierce online competition for some time and which had blamed Brexit uncertainty for a recent drop in bookings, had been desperately seeking £200 million ($250 million, 227 million euros) from private investors to avert collapse.

The news leaves a reported 600,000 tourists stranded worldwide, including around 150,000 holidaymakers seeking help from the British government to return home.

In a statement published in the early hours of the morning, Thomas Cook said that “despite considerable efforts” it was unable to reach an agreement between the company’s stakeholders and proposed new money providers.

“The company’s board has therefore concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect,” the statement added.

The UK government said it had hired planes to fly home British tourists, in an operation starting immediately.

“Following the collapse of Thomas Cook and the cancelation of all its flights, Transport Secretary Grant Shapps has announced that the government and UK Civil Aviation Authority has hired dozens of charter planes to fly customers home free of charge,” a statement said, describing it as the largest repatriation in peacetime history.