On Sept. 22, Thomas Cook, a household name in the U.K, ceased operations, after 178 years in business.
READ MORE: Thomas Cook folds, thousands left stranded
In a statement, the company wrote that its board "concluded that it had no choice but to take steps to enter into compulsory liquidation with immediate effect" after talks on a financial rescue fell apart.
As a result, thousands of passengers were left stranded.
Now, hundreds of hotels in Europe, who counted on Thomas Cook for airlift and for filling rooms, are at risk of collapsing themselves, some reports say.
Hundreds of hotels at risk
According to CTV News, "There are 500 hotels which are going to close immediately due to the collapse of Thomas Cook and the situation could get worse if the government doesn't take immediate action," Juan Molas, head of Spain's Confederation of Hotels and Tourist Accommodation, told business daily Cinco Dias.
As the colder months come to the U.K., Spain was, and continues to be a popular holiday spot; however, Thomas Cook held 30 per cent of the air capacity. This means that approximately 1.3 million airline seats will be empty, with Tenerife and Lanzarote, CTV News says.
Iberostar Hotels & Resorts currently operates 47 hotels and resorts in Europe, 37 of which are in Spain, distributed throughout Barcelona, Ibiza, Malaga, Cadiz, Lanzarote, Tenerife, Fuerteventura, Madrid, Huelva, and Mallorca.
In a statement provided to PAX, the company wrote:
"The Iberostar Group is extremely saddened that Thomas Cook has now ceased trading as the company has played a major role in our growth and strategies over the last 50 years.
We have implemented an action plan that will guarantee the holidays of Thomas Cook customers staying at our hotels who will be repatriated in an ordered and responsible manner, in keeping with our code of ethics and our company’s pre-established crisis management programmes. We are also working in collaboration with other companies, organisations and institutions in order to safeguard the connections by air with the various outbound markets and to ensure that the tourism sector will continue to generate and contribute value on an international scale."
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