David Coker, Senior Lecturer in Finance and Accounting, was quoted in an article by Sputnik International about the financial issues that travel giant Thomas Cook faced prior to their collapse.
![David Coker](/sites/default/public-files/styles/panel_image_1_2_768px_/public/general-images/David-Coker-edited-pic.jpg?itok=cCyEMt6s)
David Coker argued that Thomas Cook’s problems started 10 years ago, and stressed that the fundamental reason for their collapse was debt.
He said: “We’re talking about a company that’s sitting on two billion dollars in debt and that’s about 20 percent of their revenue – it’s not a good place to be. And they did this – they took on this debt about 10 years ago – most of it was acquired.”
Discussing the potential consequences of Thomas Cook’s liquidation, he said that: “There’s a lot of uncertainty for people that are already travelling.
“A lot of people are now very nervous about package holidays. I could see that eroding trust in this business model going forward.”