Thomas Cook (TCG)  couldn’t save itself, but some saw what was coming and acted accordingly.

The firm, which had been in existence for 178 years, still had 500 outlets in March, despite the fact that businesses on the high street were suffering and as people increasingly booked flights and deals online.

Management tried desperately to turn the company around, according to the BBC, as the government was asked for a £250m bailout, which was denied.

A £900m rescue deal, led by its largest shareholder Chinese firm Fosun in August, looked promising, but a further £200m contingency funding cast doubt on the deal.

However, some asset managers were quick to capitalise, with firms such as Melqart Asset Management and TT International opening shorts last Monday on the 16th of September, according to FCA short disclosure documents.

Kite Lake Capital, opened a 1.3% short position in Thomas Cook on August 28, over 3 weeks before the liquidation.

The same asset manager also opened a short position in Carillion not long before the construction company collapsed in January 2018.

Thomas cook had large debts, and was a high-street focused business in a world of online consumer purchases and changing holiday habits.

The firms opening short positions in Thomas Cook had a reason to doubt Thomas Cook’s recovery, and are often a good indicator that at least some market participants feel a company’s share price is overvalued.

In this case, the shares are now worthless as Thomas Cook enters into liquidation proceedings and those who borrowed shares for the purpose of short selling are set for a hefty windfall.

On the other hand, competitor TUI seems to be managing change well. Shares were up 8% after the news of Thomas Cook’s liquidation.

The company is growing its hotel and cruise business, as well as their digitised platform, the Global Distribution Network Online Travel Agent, in response to a changing market.

It is also placing emphasis on a “diversified destination strategy” which has delivered strong performance for the company - adapting to changing demands for holiday locations.

The tour operator may also be set for a windfall as package holiday consumers shift to the competitors.

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