Thomas Cook maintenance arm to close

The aeroplane maintenance arm of Thomas Cook is set to shut its doors two months after the tour operator collapsed into administration, the Insolvency Service has said.

Thomas Cook Aircraft Engineering, based in Manchester, will be wound down and close as the group is liquidated.

KPMG, which has been appointed as special manager of the company, is contacting staff with the information they need to claim redundancy payments, the Government said.

The arm was taken over by Thomas Cook as part of the 2007 merger with £1.1 billion MyTravel, and was renamed from MyTravel Aircraft Engineering.

The Government also said that Thomas Cook employees who have been off sick for more than six months cannot expect to get any more payments from the firm.

It told staff to speak to insurance companies about future payments, and the Official Receiver is looking into missing payments that some employees were expecting in September.

Thomas Cook ceases trading
Thomas Cook ceases trading

Thomas Cook collapsed into administration two months ago after months of problems drove the company over the edge.

However the name is set to outlive the 178-year-old company after Chinese company Fosun snapped up the rights to it at the beginning of November.

And last month, Sunderland-based Hays Travel bought the company’s 555 high street stores for £6 million. It has managed to save most of them, and recently embarked on a massive hiring spree to find 1,500 new members of staff for its 745 shops across the country.

The company’s Scandinavian arm was bought by Petter Stordalen and private equity fund Altor, in a deal which could save 2,300 jobs.

The Norwegian and his family are the owners of Scandinavia’s largest hotel chain, Nordic Choice Hotels, and he has a net worth 1.4 billion US dollars (£1.1 billion), according to Forbes. His 2010 wedding was officiated by rock star Bob Geldof.