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Former Thomas Cook bosses defend decisions while leading failed company

Operators
23 October 2019

Former Thomas Cook bosses defended the decisions they made while leading the company at a Westminster inquiry this morning (23 October).

Former CFO Bill Scott and former chief executive Manny Fontenla-Novoa. Picture: Parliament.tv.

Manny Fontenla-Novoa and Harriet Green answered questions about Cook’s business model at Parliament’s Business, Energy and Industrial Strategy select committee, which is investigating the collapse.

Fontenla-Novoa said he believed acquiring MyTravel in 2007 – blamed for the build up of debt by Peter Fankhauser – was the right decision.

It came before a £237 million acquisition spree and £290 million paid to shareholders in 2008-2010, which led to a 2011 cash crisis.

At the inquiry, committee chair Rachel Reeves highlighted Cook was not a signatory to the Prompt Payment Code, with average payments made after 60 or 70 days.