One of Britain's biggest travel companies has confirmed it's in "advanced discussions" to be sold to the owner of Club Med in a multi-million-pound rescue deal.
Thomas Cook's travel agent and hotels arm could be separated under a transaction that will see Chinese tour operator Fosun give the struggling business a £750 million cash injection.
As news broke on Friday, shares in Thomas Cook plunged more than 40% over the deal which would effectively hand over full control of the company's airline arm.
Yet bosses at the 200-year-old travel firm insisted that passengers should continue to book with the company - despite fears a sale could throw the business, including flights and hotels, into chaos.
Thomas Cook's chief executive, Peter Fankhauser, said the proposal was "not the outcome any of us wanted" but insisted it was "pragmatic".
He told the BBC that customers did not need to worry because their holiday bookings were "secure".
What Thomas Cook's sale will mean for your holiday
"They can book with us without worries," Fankhauser said. "We have enough resources to operate our business so they can enjoy their holidays with us."
The cash injection will give the group enough money to trade through to the end of next year and invest for the future.
"On completion of these proposals our Tour Operator would be majority-owned by Fosun Tourism, the owner of Club Med, with the Airline staying under the ownership of Thomas Cook Group plc. Thomas Cook’s banks and holders of other debt would own the remaining parts of the Tour Operator and Airline. The Airline and Tour Operator will continue to work closely together, like they do today," a statement on the Thomas Cook website explains.
"Holidays and flights will not be impacted and will continue to operate as normal. All of our holidays are still ATOL-protected, and customers can book their holidays and flights with confidence."
The announcement follows recent reports that Fosun was eyeing up a bid which could see the world's oldest package holiday company divided into two.
A spokesman for Fosun said: "Fosun is a shareholder in Thomas Cook, because it is a British company operating in the global travel industry, in which we have extensive experience.
"We are committed investors, with a proven track record of turning around iconic brands including Club Med and Wolverhampton Wanderers FC."
Thomas Cook chief executive Peter Fankhauser said: "After evaluating a broad range of options to reduce our debt and to put our finances onto a more sustainable footing, the board has decided to move forward with a plan to recapitalise the business, supported by a substantial injection of new money from our longstanding shareholder, Fosun, and our core lending banks.
"While this is not the outcome any of us wanted for our shareholders, this proposal is a pragmatic and responsible solution which provides the means to secure the future of the Thomas Cook business for our customers, our suppliers and our employees."
The company added that the sale process for its airline had been "paused" while the funding takes place.
Thomas Cook reported a 1% rise in first quarter revenue to £1.65 billion last year, but underlying operating losses increased by £14 million to £60 million, prompting review talks.
The chain blamed losses on a weaker demand for Spain after last year's prolonged heatwave and added that bookings for winter breaks in the Nordics are also down.
In March, the business revealed plans to close 21 high street stores at a loss of 320 jobs - with more expected to follow across its 566-store network as sales of package breaks continue to plummet.
In recent months, it admitted the European travel market has become "progressively more challenging".
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