The collapse of 178-year old Thomas Cook has brought the focus back on struggling Indian tours and travel company Cox and Kings Ltd, which has defaulted on most of its debt repayment obligations since June. The stock price has eroded 98 percent of its market value this year alone.
Cox & Kings, which has closed its Australia and New Zealand operations last week, is also struggling to book new clients in India, reported US-based travel news and data portal Skift, citing an anonymous source.
The company has started informing clients that the firm doesn't have funds to pay for hotels, the source told Skift, adding that Cox and Kings has also stopped marketing in India and not receiving fresh bookings.
The report also added that MakeMyTrip, Thomas Cook India and Abercrombie & Kent are among the firms rumoured to be considering Cox & Kings' acquisition. MakeMyTrip Group CEO Deep Karla and Thomas Cook India CEO Madhavan Menon declined to comment on the report, said Skift.
Cox & Kings first defaulted on commercial papers (CPs) worth Rs 150 crore in June 2019, since then, the defaults have been a recurring occurrence. Latest, the company has defaulted on payments worth Rs 30 crore on September 20, according to a regulatory filing.
The company, which is working to finalise to a resolution plan, has informed the stock exchanges that it is evaluating the potential of various businesses to generate cash flow. The travel company is also looking to sell its European hospitality chain Meininger Hotels, Bloomberg reported citing people with knowledge of the matter.
Established in 1758, Cox and Kings is headquartered in Mumbai and has over 5,000 employees. The company also owns offices in New Delhi, Chennai, Bangalore, Kolkata, Ahmedabad, Kochi, Hyderabad, Pune, Goa, Nagpur and Jaipur, noted the Skift report.
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