Thomas Cook turns down £400m cash injection plan

HOLIDAYS firm Thomas Cook has reportedly rejected a £400 million package put together by industry veterans to turn the company around.

The group, which last year turned to its banks for a lifeline following dire trading, was approached by former Airtours executive Terry Fisher and Clive Jacobs, the founder of car rental business Holiday Autos.

Their initiative, which they said had the support of one of its largest shareholders Invesco, would have seen £400 million injected into the business ahead of a larger rights issue, while they would have become co-chief executives, according to the Financial Times.

But the plan, which would have been partly funded with the veterans’ own money, was rejected by chairman Frank Meysman and is now understood to have been dropped altogether.

The group, which has 1,300 shops, recently said it was progressing with its turnaround plan for the UK business, which includes focusing on fewer and better quality hotels and a drive for more online bookings.