Thomas Cook has confirmed it is in takeover talks with the Chinese owners of Wolverhampton Wanderers .
Fosun - which also owns Club Med - has issued an "approach" to the world's oldest travel firm.
It comes after speculation on Saturday that would see a major shake-up for the 178-year-old Thomas Cook company.
The talks follow a worrying time for the firm, which reported a record £1.5billion loss last month.
Confirming rumours of takeover talks, the travel group said it received an offer from Fosun Internation, the group's largest shareholder.
It said "it is in discussions with Fosun following receipt of a preliminary approach.
"There can be no certainty that this approach will result in a formal offer. However, the Board will consider any potential offer alongside the other strategic options that it has, with the aim of maximising value for all its stakeholders."
The travel group was first rumoured to be considering a sale of some, or all, of its ailing business in April, after releasing two separate profit warnings in 2018.
It followed a turbulent year of falling demand for package holidays, partly blamed on the UK heatwave .
The company announced plans to close 21 high street stores at a loss of 320 jobs amid a "strategic review" of its airline business.
Just weeks later it emerged that Fosun had expressed interest in bidding for its travel agent arm.
Fosun, headed by billionaire Guo Guangchang, bought Wolves for £30million in July 2016 and has invested tens of millions of pounds in the club.
Thomas Cook was founded in 1841 by a 32 year-old cabinet-maker and former Baptist preacher who began offering one-day rail excursions from Leicester to loughborough for a shilling.
From there, it went on to become one of the world's largest holiday companies, marking its 175th anniversary three years ago.
