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  • August 2014 (Revised March 2016)
  • Case
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Thomas Cook Group on the Brink (A)

By: Benjamin C. Esty, Stuart C. Gilson and Aldo Sesia
  • Format:Print
  • | Language:English
  • | Pages:28
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Abstract

Harriett Green, the newly appointed CEO of Thomas Cook Group, faces a daunting set of business and financial challenges at the 171-year old UK travel services company. The company has lost almost £600 million in the last three quarters; has seen its stock price fall from 230 pence to a low of 8.8 pence in the past two years; and had seen its bonds trade down to as little as 40% of face value. In just a few weeks the company's license to operate is to be reviewed by the United Kingdom's Civil Aviation Authority, competitors are publicly questioning the company's viability, and seasonal working capital needs are about to peak. With the company's very survival at stake, Green must devise a turnaround plan that will return the company to financial health. Any plan must address the company's high cost structure, raise substantial new capital, fix the balance sheet, create a profitable growth strategy, and build a more effective organization and culture. But achieving all of these objectives within the short time available will be a major challenge.

Keywords

Turnaround; Corporate Restructuring; Change Leadership; Female Ceo; Change Management; Communication Strategy; Borrowing and Debt; Cash Flow; Cost Management; Financial Liquidity; Financial Management; Executive Compensation; Leading Change; Crisis Management; Value Creation; Travel Industry; United Kingdom

Citation

Esty, Benjamin C., Stuart C. Gilson, and Aldo Sesia. "Thomas Cook Group on the Brink (A)." Harvard Business School Case 215-008, August 2014. (Revised March 2016.)
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About The Authors

Benjamin C. Esty

Finance
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Stuart C. Gilson

Finance
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Related Work

    • May 2015 (Revised March 2016)
    • Faculty Research

    Thomas Cook Group on the Brink (B): Transformation Year 1 Results

    By: Benjamin C. Esty
    • May 2015 (Revised March 2016)
    • Faculty Research

    Thomas Cook Group on the Brink (C): Transformation Year 2 Results

    By: Benjamin C. Esty
    • August 2014 (Revised March 2016)
    • Faculty Research

    Thomas Cook Group on the Brink (A)

    By: Benjamin C. Esty, Stuart C. Gilson and Aldo Sesia
    • November 2016
    • Faculty Research

    Thomas Cook Group on the Brink (A), (B), and (C)

    By: Benjamin C. Esty and Stuart C. Gilson
Related Work
  • Thomas Cook Group on the Brink (B): Transformation Year 1 Results By: Benjamin C. Esty
  • Thomas Cook Group on the Brink (C): Transformation Year 2 Results By: Benjamin C. Esty
  • Thomas Cook Group on the Brink (A) By: Benjamin C. Esty, Stuart C. Gilson and Aldo Sesia
  • Thomas Cook Group on the Brink (A), (B), and (C) By: Benjamin C. Esty and Stuart C. Gilson
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