FRC considers investigation into Thomas Cook collapse

The Financial Reporting Council (FRC) has revealed it is weighing up an investigation into the Thomas Cook collapse.

An FRC spokesperson said that “in light of recent developments at Thomas Cook” it is considering whether there is any case for investigation and enforcement action as a “matter of urgency” and in cooperation with the Insolvency Service.

It comes after the British tour operator announced that all of the companies in its group, including Thomas Cook Airlines ceased trading on Monday (23 September), after last-ditch negotiations failed.

As a result, all 600 of Thomas Cook’s retail shops have now closed, and comes after the company was denied a government bailout of £250m.

Insolvency experts from Big Four accounting firm KPMG have been appointed as special managers to Thomas Cooks’ retail and aircraft maintenance divisions.

A KPMG spokesperson said: “Blair Nimmo, Jim Tucker and David Pike of KPMG have been appointed by the court as special managers to the retail division of Thomas Cook on the 23 September following the appointment of the Official Receiver as liquidator.”

The retail division comprises of six companies: TCCT Retail Limited, Thomas Cook Retail Limited, Retail Travel Limited, Travel and Financial services limited, The Freedom Travel Group Limited and Future Travel Limited.

They added: “Simultaneously David Pike, Mike Pink and Ben Leith of KPMG have been appointed special managers to Thomas Cook Aircraft Engineering Limited, which is based at Manchester airport. The immediate priority is to provide support and assistance to those employees who have been made redundant.”

Management consultancy AlixPartners has been appointed special manager over Thomas Cook’s airline and tour operator companies.