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Thomas Cook collapse: MPs and financial regulator may investigate - business live Thomas Cook collapse: MPs and financial regulator may investigate - business live
(32 minutes later)
Time for a recap
Pressure is building on Thomas Cook’s management and auditors after the holiday firm collapsed under a mountain of debt on Monday.
Parliament’s business committee has pledged to examine what went wrong. Rachel Reeves MP says there are “serious questions to answer, including about the company’s accounting practices, its renumeration policy and practice, and about the stewardship of the company.”
The Financial Reporting Council (which monitors the accountancy and auditing professions) is pondering whether to launch an “urgent” inquiry.
Such investigations could examine how Thomas Cook paid around £35m to its last three CEOs over the last 12 years, and whether its accounts were fully open and transparent.
Business secretary Andrea Leadsom also piled pressure onto directors, saying the Insolvency Service needs to get to the bottom of the situation. The CBI agrees.
Thomas Cook repatriation from Crete: to me, this seems organised and surprisingly efficient so far. Passengers v positive about the process and, indeed, about the company. But very unhappy about directors’ bonuses. “Immoral”, “disgusting”, “awful”... pic.twitter.com/S1aWUPfROp
The warnings came on the second day of Operation Matterhorn, which is repatriating the 160,000 people who were holidaying with Thomas Cook when it fell into liquidation.
The Civil Aviation Authority was planning to bring over 16,00 people back to the UK today, having repatriated nearly 15,000 on Monday. The CAA said the operation was going pretty well, although not without some hurdles.
Some flights have been delayed, while others are returning passengers to Manchester rather than their intended destinations (such as Newcastle or Gatwick).
Thomas Cook customers have also faced demands from hotels to pay bills, despite having already stumped up for their holidays. One told the Guardian that notes were pushed under their doors (photo here), showing how much they had to pay.
Customers have also been warned not to fall victim to fraudsters, who may claim to be calling from Thomas Cook with a refund.
Rival holiday firm TUI, has been forced to cancel some holidays too, having booked its customers onto Thomas Cook flights.
Anger is building against airlines and holiday firms for hiking their prices, as disappointed Thomas Cook customers try to find alternative flights.
Airlines accused of ramping up prices after Thomas Cook collapse
The BBC have also spoken to Thomas Cook customers who’ve been told to pay for their hotel rooms, despite having already paid for their holidays (a problem we flagged up earlier)The BBC have also spoken to Thomas Cook customers who’ve been told to pay for their hotel rooms, despite having already paid for their holidays (a problem we flagged up earlier)
Here’s a flavour:Here’s a flavour:
Jess Beeton, on holiday with her partner Richard Berrington, said “everyone who booked through Thomas Cook has been locked out of the rooms”.Jess Beeton, on holiday with her partner Richard Berrington, said “everyone who booked through Thomas Cook has been locked out of the rooms”.
She added: “The only option we were given was to pay what Thomas Cook hasn’t, or get our stuff and leave.”She added: “The only option we were given was to pay what Thomas Cook hasn’t, or get our stuff and leave.”
Jess said that after the hotel locked them out, she managed to gain access to their room by saying she had medication there that she needed to take.Jess said that after the hotel locked them out, she managed to gain access to their room by saying she had medication there that she needed to take.
Once inside, she and Richard locked themselves in, but they have since paid £520 on a credit card so they can stay at the hotel until their due departure date from Spain on Sunday.Once inside, she and Richard locked themselves in, but they have since paid £520 on a credit card so they can stay at the hotel until their due departure date from Spain on Sunday.
I’ve spoken to holidaymakers in this situation today. Being asked to pay thousands of pounds for a room they’ve already paid for. #ThomasCook 'Everyone has been kicked out of their rooms' https://t.co/iZDqjLnjNQI’ve spoken to holidaymakers in this situation today. Being asked to pay thousands of pounds for a room they’ve already paid for. #ThomasCook 'Everyone has been kicked out of their rooms' https://t.co/iZDqjLnjNQ
Thomas Cook’s bosses, directors and auditors have just been warned that they could be hauled to Westminster to explain themselves.Thomas Cook’s bosses, directors and auditors have just been warned that they could be hauled to Westminster to explain themselves.
Rachel Reeves MP, chair of the BEIS Committee, says parliament wants answers about why the company collapsed, who made mistakes, and how bosses were paid so much for running the firm.Rachel Reeves MP, chair of the BEIS Committee, says parliament wants answers about why the company collapsed, who made mistakes, and how bosses were paid so much for running the firm.
“The public will be rightly appalled that as Thomas Cook mounted up debt and as the company headed for trouble, company bosses were happily pocketing hefty pay-packages.“The public will be rightly appalled that as Thomas Cook mounted up debt and as the company headed for trouble, company bosses were happily pocketing hefty pay-packages.
Now, in the aftermath of the company’s collapse, as frustrated travellers are stuck abroad, when holidays are being cancelled and thousands of staff are losing their jobs, there are serious questions to answer, including about the company’s accounting practices, its renumeration policy and practice, and about the stewardship of the company.Now, in the aftermath of the company’s collapse, as frustrated travellers are stuck abroad, when holidays are being cancelled and thousands of staff are losing their jobs, there are serious questions to answer, including about the company’s accounting practices, its renumeration policy and practice, and about the stewardship of the company.
As a Committee, we are keen to seek answers to these questions and will discuss at the next meeting how we can do that.”As a Committee, we are keen to seek answers to these questions and will discuss at the next meeting how we can do that.”
Football clubs have offering help to supporters who bought travel packages to games through Thomas Cook’s sports arm.Football clubs have offering help to supporters who bought travel packages to games through Thomas Cook’s sports arm.
Chelsea has pledged to cover the costs for fans who booked travel with Thomas Cook to Lille or Southampton, and who now need to rebook.Chelsea has pledged to cover the costs for fans who booked travel with Thomas Cook to Lille or Southampton, and who now need to rebook.
Liverpool says it is trying to help supporters who’d bought packages through collapsed Thomas Cook for their next two home games -- against FC Salzburg in the Champions League, and the Premier League fixture against Leicester.Liverpool says it is trying to help supporters who’d bought packages through collapsed Thomas Cook for their next two home games -- against FC Salzburg in the Champions League, and the Premier League fixture against Leicester.
Thomas Cook customers have been warned not to fall for fraudsters, who may try to trick them out of their bank details.Thomas Cook customers have been warned not to fall for fraudsters, who may try to trick them out of their bank details.
Barclays Bank has warned people to be on their guard, in case a scammer phones up pretending to be able to help with rebooking a flight.Barclays Bank has warned people to be on their guard, in case a scammer phones up pretending to be able to help with rebooking a flight.
If your company has booked #ThomasCook for business flights, make sure staff are aware of fraudsters who could exploit the company's administration. https://t.co/v8lOY3kiu9If your company has booked #ThomasCook for business flights, make sure staff are aware of fraudsters who could exploit the company's administration. https://t.co/v8lOY3kiu9
The Take Five campaign to raise fraud awareness also has some advice, includingThe Take Five campaign to raise fraud awareness also has some advice, including
If you are a Thomas Cook customer, don’t be tricked into giving a fraudster access to your personal or financial details: pic.twitter.com/C3WRleTOHiIf you are a Thomas Cook customer, don’t be tricked into giving a fraudster access to your personal or financial details: pic.twitter.com/C3WRleTOHi
One Twitter user flags up that people are being targeted:One Twitter user flags up that people are being targeted:
FB - the scams are starting."Had a phone call from 'Thomas Cook refund agent' going to give me a refund on the holiday I've purchased (no I havent) just need my card details & 3 digit number on back to refund me.FFS.this is disgusting..people have lost their jobs & livelihoods!"FB - the scams are starting."Had a phone call from 'Thomas Cook refund agent' going to give me a refund on the holiday I've purchased (no I havent) just need my card details & 3 digit number on back to refund me.FFS.this is disgusting..people have lost their jobs & livelihoods!"
People who booked holidays through travel giant TUI are now caught up in Thomas Cook’s collapse.People who booked holidays through travel giant TUI are now caught up in Thomas Cook’s collapse.
TUI, who are Europe’s biggest tour operator, had used Thomas Cook Airlines to fly some of its customers to and from their destinations.TUI, who are Europe’s biggest tour operator, had used Thomas Cook Airlines to fly some of its customers to and from their destinations.
It has now decided to cancel all such holidays, up until the end of October.It has now decided to cancel all such holidays, up until the end of October.
In a statement, TUI says:In a statement, TUI says:
We’ve unfortunately had to cancel any TUI and First Choice bookings featuring Thomas Cook flights for any customers due to travel from Monday 23rd September until 31st October 2019. The advice is not to travel to the airport. We will be organising full holiday refunds for these customers and will process these as quickly as possible.We’ve unfortunately had to cancel any TUI and First Choice bookings featuring Thomas Cook flights for any customers due to travel from Monday 23rd September until 31st October 2019. The advice is not to travel to the airport. We will be organising full holiday refunds for these customers and will process these as quickly as possible.
For any TUI and First Choice customers with Thomas Cook flights due to travel after this date, please bear with us as we look at other options and alternatives for you as a priority.For any TUI and First Choice customers with Thomas Cook flights due to travel after this date, please bear with us as we look at other options and alternatives for you as a priority.
We are working hard to help affected customers find alternative holidays, so we will do everything we can to help in these extraordinary circumstances.We are working hard to help affected customers find alternative holidays, so we will do everything we can to help in these extraordinary circumstances.
As we mentioned earlier today, TUI is also pledging to fly home any customers who are already on holiday, and had been scheduled to return on a Thomas Cook flight:As we mentioned earlier today, TUI is also pledging to fly home any customers who are already on holiday, and had been scheduled to return on a Thomas Cook flight:
Tui boss says it will fly home customers booked on Thomas Cook flightsTui boss says it will fly home customers booked on Thomas Cook flights
Glasgow Airport has just detained four of Thomas Cook’s aeroplanes, as ‘security’ for the money it is owed by the company, reports the BBC’s Connor Gillies.Glasgow Airport has just detained four of Thomas Cook’s aeroplanes, as ‘security’ for the money it is owed by the company, reports the BBC’s Connor Gillies.
Glasgow Airport has detained four Thomas Cook planes 'as security' for unpaid bills following the collapse of the travel giant.Glasgow Airport has detained four Thomas Cook planes 'as security' for unpaid bills following the collapse of the travel giant.
The last Thomas Cook flight landed in Glasgow early yesterday morning, from Orlando in Florida, a few hours after the company went into liquidations.The last Thomas Cook flight landed in Glasgow early yesterday morning, from Orlando in Florida, a few hours after the company went into liquidations.
Scheduled departures from Glasgow were then suspended, as at other UK airports.Scheduled departures from Glasgow were then suspended, as at other UK airports.
Airports owed landing fees by Thomas Cook will presumably be joining the ranks of creditors, who must file claims with the Insolvency Service.Airports owed landing fees by Thomas Cook will presumably be joining the ranks of creditors, who must file claims with the Insolvency Service.
Spain’s acting tourism minister has said there are 53,000 British tourists currently travelling with Thomas Cook at Spanish resorts.Spain’s acting tourism minister has said there are 53,000 British tourists currently travelling with Thomas Cook at Spanish resorts.
Reyes Maroto also told reporters in Madrid that her ministry has been in touch with German and Swedish authorities to ensure Thomas Cook subsidiaries continue to operate at least for the winter season, Reuters reports.Reyes Maroto also told reporters in Madrid that her ministry has been in touch with German and Swedish authorities to ensure Thomas Cook subsidiaries continue to operate at least for the winter season, Reuters reports.
Maroto also chaired a meeting with regional tourism ministers from Canary Islands, Balearic Islands, Valencia, Catalonia and Andalusia and delegates of main Spanish touristic employers’ organizations to evaluate the impact of the collapse of Thomas Cook today.Maroto also chaired a meeting with regional tourism ministers from Canary Islands, Balearic Islands, Valencia, Catalonia and Andalusia and delegates of main Spanish touristic employers’ organizations to evaluate the impact of the collapse of Thomas Cook today.
Here’s one of the notes pushed under the doors of Thomas Cook holidaymakers in Mallorca, asking them to pay bills owed by the company (see earlier post).Here’s one of the notes pushed under the doors of Thomas Cook holidaymakers in Mallorca, asking them to pay bills owed by the company (see earlier post).
Here’s a couple more photos of Thomas Cook customers trying to get home today:Here’s a couple more photos of Thomas Cook customers trying to get home today:
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One Thomas Cook holiday maker describes the situation in his hotel as a ‘giant self-help group’ after guests were forced to sort out payment issues in the absence of any official help.One Thomas Cook holiday maker describes the situation in his hotel as a ‘giant self-help group’ after guests were forced to sort out payment issues in the absence of any official help.
Reriree Robert Rowe, 67, his wife Maria are staying at Hotel More, a family run hotel in Alcudia town in Mallorca.Reriree Robert Rowe, 67, his wife Maria are staying at Hotel More, a family run hotel in Alcudia town in Mallorca.
Rowe said that all hotel guests who were on Thomas Cook packages had notes put under their door on Monday morning asking them for money. He contacted CAA and was told that they were Atol protected and shouldn’t pay the hotel.Rowe said that all hotel guests who were on Thomas Cook packages had notes put under their door on Monday morning asking them for money. He contacted CAA and was told that they were Atol protected and shouldn’t pay the hotel.
However many guests were unsure about what to do, he says (via our callout)However many guests were unsure about what to do, he says (via our callout)
“95% are people here are pensioners and only a few people can use smartphones and people weren’t getting information as there were no reps around.”“95% are people here are pensioners and only a few people can use smartphones and people weren’t getting information as there were no reps around.”
“The hotel manager had asked for people’s bank details. It was very emotional, people were upset. Some guests were trying to sort it out and pass on the information from CAA. It was like a giant self-help group.”“The hotel manager had asked for people’s bank details. It was very emotional, people were upset. Some guests were trying to sort it out and pass on the information from CAA. It was like a giant self-help group.”
Rowe said twenty or thirty guests held an impromptu meeting on Tuesday morning and reiterated that nobody should pay.Rowe said twenty or thirty guests held an impromptu meeting on Tuesday morning and reiterated that nobody should pay.
“ The hotel management haven’t asked for any more money. We’re laying low, we have four more days here. I feel sorry for them in a way because they’re a small family run hotel and it seems bad that Thomas Cook have put small traders in this position. But I think the way they handled it was poor.“ The hotel management haven’t asked for any more money. We’re laying low, we have four more days here. I feel sorry for them in a way because they’re a small family run hotel and it seems bad that Thomas Cook have put small traders in this position. But I think the way they handled it was poor.
“I come from Melbourne in Derbyshire, where Thomas Cook started. There’s Thomas Cook Close, Thomas Cook Gardens and Thomas Cook almshouses. I don’t know what they’re going to be called now.”“I come from Melbourne in Derbyshire, where Thomas Cook started. There’s Thomas Cook Close, Thomas Cook Gardens and Thomas Cook almshouses. I don’t know what they’re going to be called now.”
A lot of people face losses because of Thomas Cook’s collapse.A lot of people face losses because of Thomas Cook’s collapse.
The companies suppliers could be left with unpaid bills, while employees need to submit claims to obtain the redundancy payments and wages they’re entitled to.The companies suppliers could be left with unpaid bills, while employees need to submit claims to obtain the redundancy payments and wages they’re entitled to.
The Insolvency Service has more details here.The Insolvency Service has more details here.
If you are an employee or creditor affected by #ThomasCook, we have useful information about how to make claims in the liquidation https://t.co/UpfHpctze5 pic.twitter.com/E8RfjuVpveIf you are an employee or creditor affected by #ThomasCook, we have useful information about how to make claims in the liquidation https://t.co/UpfHpctze5 pic.twitter.com/E8RfjuVpve
Here’s our news story about the accountancy watchdog sniffing around Thomas Cook’s collapse:Here’s our news story about the accountancy watchdog sniffing around Thomas Cook’s collapse:
Thomas Cook collapse: accounting watchdog weighs up investigationThomas Cook collapse: accounting watchdog weighs up investigation
The Confederation of British Industry has backed calls for a probe into the “fat cat” pay at Thomas Cook.The Confederation of British Industry has backed calls for a probe into the “fat cat” pay at Thomas Cook.
Josh Hardie, deputy director-general at the CBI, says (via the Evening Standard).Josh Hardie, deputy director-general at the CBI, says (via the Evening Standard).
Questions are now rightly being asked about directors’ remuneration and decision-making.Questions are now rightly being asked about directors’ remuneration and decision-making.
Disproportionate rewards are a lightning rod for public discontent, so high pay can only ever be justified by high performance over the long term.Disproportionate rewards are a lightning rod for public discontent, so high pay can only ever be justified by high performance over the long term.
The CBI represents Britain’s bosses, so won’t have enjoyed headlines about “fat cats creaming off £47m”.The CBI represents Britain’s bosses, so won’t have enjoyed headlines about “fat cats creaming off £47m”.
Holidaymakers are sharing their stories of further difficulties as they try and return to the UK (through our callout to readers).Holidaymakers are sharing their stories of further difficulties as they try and return to the UK (through our callout to readers).
Nikita Locke, 22 was on a Thomas Cook package holiday at the SunConnect One hotel in Monastir, Tunisia with her sister Shannon and two young children.Nikita Locke, 22 was on a Thomas Cook package holiday at the SunConnect One hotel in Monastir, Tunisia with her sister Shannon and two young children.
They were supposed to be taken by coach organised by the hotel to Enfidha–Hammamet airport on Tuesday but were advised by the hotel to book their own taxi seven hours before their 1015 flight to Birmingham was due to depart, in case of disruption.They were supposed to be taken by coach organised by the hotel to Enfidha–Hammamet airport on Tuesday but were advised by the hotel to book their own taxi seven hours before their 1015 flight to Birmingham was due to depart, in case of disruption.
They paid 120 Tunisian Dinar, about £33.50, for the taxi in advance and were given a receipt by hotel staff but when the taxi arrived the driver claimed he hadn’t been paid by the hotel and demanded more money.They paid 120 Tunisian Dinar, about £33.50, for the taxi in advance and were given a receipt by hotel staff but when the taxi arrived the driver claimed he hadn’t been paid by the hotel and demanded more money.
Locke said:Locke said:
“It was 3am and we had the two kids screaming and crying, standing outside the hotel.“It was 3am and we had the two kids screaming and crying, standing outside the hotel.
My sister and I were so stressed wondering if we were going to make it to the airport. I just refused to pay out any more money.”My sister and I were so stressed wondering if we were going to make it to the airport. I just refused to pay out any more money.”
The hotel finally paid the driver 45 minutes later, and the family were taken to the airport.The hotel finally paid the driver 45 minutes later, and the family were taken to the airport.
Their flight was due to depart at 10.15 am, but it’s now scheduled to leave at 1.20pm.Their flight was due to depart at 10.15 am, but it’s now scheduled to leave at 1.20pm.
Reminder: you can shares your experiences here.Reminder: you can shares your experiences here.
In Crete, authorities say eight UK-bound flights have been chartered to fly Thomas Cook customers back home today.In Crete, authorities say eight UK-bound flights have been chartered to fly Thomas Cook customers back home today.
Some 20,000 Britons have been stranded on the island which has borne the brunt of the fallout in Greece of Thomas Cook’s bankruptcy. Two planes are scheduled to fly to Gatwick, two to Manchester with the rest slated to fly to Newcastle, Birmingham, Glasgow and Bristol. Around 50,000 Thomas Cook customers have been marooned nationwide.Some 20,000 Britons have been stranded on the island which has borne the brunt of the fallout in Greece of Thomas Cook’s bankruptcy. Two planes are scheduled to fly to Gatwick, two to Manchester with the rest slated to fly to Newcastle, Birmingham, Glasgow and Bristol. Around 50,000 Thomas Cook customers have been marooned nationwide.
Greece, already hard hit by its long-running debt crisis, has been hugely affected by the tour company’s collapse with the country’s tourism confederation estimating today that damages could reach €500m (up from initial estimates of €300m).Greece, already hard hit by its long-running debt crisis, has been hugely affected by the tour company’s collapse with the country’s tourism confederation estimating today that damages could reach €500m (up from initial estimates of €300m).
On Tuesday Haris Theoharis, the tourism minister, said the firm owed outstanding payments from mid-July to hotels and other businesses.On Tuesday Haris Theoharis, the tourism minister, said the firm owed outstanding payments from mid-July to hotels and other businesses.
As the engine of the Greek economy, the tourism industry contributes around a quarter of total economic output, employing an ever growing number of people – at last count one in five.As the engine of the Greek economy, the tourism industry contributes around a quarter of total economic output, employing an ever growing number of people – at last count one in five.
Relief measures are being considered by the centre right government once total damages are calculated. Following an urgent meeting of tourism and finance ministers last night it emerged that tax cuts are among the measures being considered for enterprises worst affected by the tour operator’s liquidation.Relief measures are being considered by the centre right government once total damages are calculated. Following an urgent meeting of tourism and finance ministers last night it emerged that tax cuts are among the measures being considered for enterprises worst affected by the tour operator’s liquidation.