Wolves face £1bn losses over Thomas Cook collapse

Wolves’ owners are facing losses of more than £1billion following the collapse of Thomas Cook and are seeking fresh investment. Chinese conglomerate Fosun International were the biggest single shareholder, owning 18 per cent of the travel operator that went bust on Monday. sources with knowledge of the company told Sportsmail their stake had at one stage been valued at more than £1bn after they began buying shares in 2015. shares in Thomas Cook collapsed from a peak of £1.50 in May 2018 to a few pence before the holiday company was declared bankrupt with debts of £1.7bn. Wolves insisted yesterday that Fosun’s losses would have no impact on the running of the club, who have thrived since the Chinese company, under the chairmanship of Guo Guangchang, bought Wolves three years ago.

Sportsmail revealed earlier this month, however, that Fosun are looking for investment in Wolves and are willing to sell up to 20 per cent of the club. Fosun are well placed to cope with Thomas Cook’s demise, with Guangchang estimated to have a fortune of more than £5bn. Fosun value Wolves at £350million, a huge increase on the £45m they paid to take sole control when they were in the Championship three years ago. A spokesperson for Fosun declined to comment. It is unclear whether Fosun’s

search for additional investment is related to their losses in Thomas Cook, which they had aimed to transform into a global giant as they also own significant stakes in Club Med and Canadian travel group Cirque du Soleil.

Fosun had tried to put together a rescue package for Thomas Cook, which if accepted would have increased the Chinese firm’s losses. They agreed to inject an additional £450m last month but withdrew as Thomas Cook’s debts mounted.

Wolves have been transformed under Fosun’s ownership and a close relationship with agent Jorge Mendes, going from a club struggling in the Championship to one that has genuine aspirations to reach the Champions League.

Under the management of Nuno Espirito Santo Wolves have won the Championship, reached the FA Cup semi-final and finished seventh in the Premier League last season, their best league position since 1980.