MPs to investigate 'sorry tale' of Thomas Cook collapse

Following the travel operator's collapse on Monday, the Business, Energy and Industrial Strategy (BEIS) Committee said it would investigate the company's accounting practices, corporate governance, and executive pay.

The committee will seek to question Thomas Cook executives including chief executive Peter Fankhauser, chairman Frank Meysman and finance boss Sten Daugaard.

Former bosses of the firm have faced criticism in recent days after it emerged they had received payouts worth more than £35.0m over the last 12 years.

Business secretary Andrea Leadsom is also in line for questioning on the government’s approach to the collapse of Thomas Cook and to corporate governance and audit reforms.

Rachel Reeves, chair of the BEIS Committee, said: "Amid the frustration of holidaymakers and the misery of thousands of staff losing their jobs, the collapse of Thomas Cook has uncovered what appears to be a sorry tale of corporate greed, raising serious questions about the actions of Thomas Cook’s bosses and their stewardship of the business.

"This latest corporate failure has shone a light once again on the use of aggressive accounting methods to aid bumper pay-outs to company executives and the apparent inability of auditors and regulators to curb these practices in the wider interests of shareholders, investors, and the public."

Evidence hearings are expected to begin in mid-to-late October, with specific dates and timings to be announced in due course.