Thomas Cook is expected to go bust tonight leaving an estimated 9,000 UK jobs at risk and an estimated 150,000 British tourists abroad, it has been reported.
Following last-ditch talks aimed at securing a £200million bailout, the 178-year-old travel company is on the verge of collapsing into administration.
According to ITV News' Business and Economics Editor Joel Hills, a formal announcement is expected later tonight or early tomorrow morning (September 23).
If the company ceased operations up to 150,000 holidaymakers could be stranded and 20,000 jobs, including 9,000 in the UK, would be at risk.
Thomas Cook bosses held 11th hour talks earlier on Sunday to save the firm after it approached the Government for a rescue deal, the Mirror reports.
Foreign Secretary Dominic Raab insisted on Sunday morning that holidaymakers will not be left stranded abroad if the tour operator collapses.
He assured worried customers contingency planning is in place in the event the business cannot be saved.
The Civil Aviation Authority was on standby with a repatriation contingency plan called Operation Matterhorn, with a potential cost of about £600million.
It would be the UK's largest peacetime repatriation effort and it would reportedly involve airlines such as British Airways and easyJet.
The Transport Salaried Staffs Association (TSSA), which represents workers at the company, had said the Government should be ready to assist with "real financial support".
General secretary Manuel Cortes called for an urgent meeting with Business Secretary Andrea Leadsom.
What customers need to know
How many people could be affected?
If Thomas Cook collapsed, up to 150,000 UK holidaymakers would be stranded abroad and a million more would lose their future bookings.
It is expected that the Civil Aviation Authority would be ordered by the Department for Transport to launch a major repatriation operation to fly them home.
When Monarch Airlines went bust in October 2017, the Government spent £60 million hiring planes to get passengers home.
Bringing back Thomas Cook passengers would likely cost more than this.
If you've booked flights with Thomas Cook
If the company cannot secure the extra funding, it risks going bust, WalesOnline reports.
That would force the Civil Aviation Authority (CAA), the government-backed aviation regulator, to pick up the estimated £600m cost of repatriating British holidaymakers.
So, in the worst case scenario, you'll be sent back to the UK by the CAA.
But anyone who has booked with them, or who plans to, is advised to take out travel insurance which will cover them financially in case of an agent or airline going bust.
Be aware, however, that this avenue typically requires an excess fee charge, which averages at around £150 on a £1,000 holiday per person.
If the airline does go bust and you don't have insurance, whether you get a refund may depend on how you've paid.
If your booking cost was between £100 and £30,000 - and any of it was paid for on your credit card - you may be able to make a claim under section 75 Consumer Credit Act.
If successful, your credit card will refund your money.
Section 75 will not apply to debit cards but you can take advantage of the chargeback scheme. You must contact the card provider within 120 days.
"While it's not a legal protection like Section 75, this is a core protection in Visa, Mastercard and American Express' rules and it can swiftly help people get their money back," an industry expert said.
If you've booked a package holiday with the firm
Consumer protection
Firstly... the UK has one of the best levels of consumer protection for travellers, we have detailed below how your booking would be protected in the result of a failure of Thomas Cook.
Secondly... many travel agents have already got in place contingency plans to contact customers and provide updates on their bookings as soon as any announcement is made.
What will happen to my booking?
If you are away on holiday... Don't worry - the CAA will arrange for you to complete your holiday as planned and will set up an airline to bring you back to the UK at the end of your holiday - Ensure you have your ATOL Certificate with you.
Future Thomas Cook Holidays
If you are booked on a future Thomas Cook package holiday you will be financially protected under the ATOL Scheme - Ensure you have a copy of your ATOL Certificate as you would need this to claim a refund.
If you are booked through a travel agent, they will assist you with finding a replacement holiday and Guide you through the re-booking process. If you have booked online you will be contacted by the CAA and advised how to claim.
If your holiday is booked with other travel companies, but with Thomas Cook Airlines flights?
If you have received an ATOL Certificate for your trip, your travel company will aim to provide a replacement flight for you, if this is not available a refund would be provided.
Again each company will have a different process so you will need to check with them in the event of the failure of Thomas Cook.
Non Thomas Cook Holidays booked through a Thomas Cook Store
As a general rule the Tour Operator eg TUI, Kuoni etc would take over your booking and your holiday would proceed as planned - some Tour Operator's may have a different policy but will communicate directly with you.
