Arcandor, the majority shareholder in Thomas Cook, has filed to open insolvency proceedings. In a statement, Arcandor said: "The aim of these proceedings is to continue the restructuring of the company and its subsidiaries that is already underway with an insolvency plan and to ensure their existence."

It follows news that Arcandor had its bid for a 650 million euros loan guarantee rejected by the German government yesterday. Thomas Cook remains unaffected by the proceedings, with the latest news drawing a line under the uncertainty caused this week. However, Thomas Cook group chief executive Manny Fontenla-Novoa is understood to be looking at a possible alternatives.  

Industry observers say finding £1 billion to buy out the majority shareholder in the current economic climate could be difficult. One option might be a  management buy-out of the 52% of shares owned by Arcandor. Contrary to some reports Arcandor has not filed for bankruptcy.

The German retail giant, which owns a 52.8 percent stake in Thomas Cook, filed for bankruptcy after failing to secure state aid. German Chancellor Angela Merkel rejected its desperate plea for a 650m euros bail-out, accusing its shareholders and backers of not presenting a sustainable plan that would protect taxpayers’ money.

Whilst Thomas Cook’s listing on the London Stock Exchange has left it “ring-fenced” from the collapse of German-listed Arcandor, doubt remains over who its future ownership.