The government is to set-up a compensation scheme for Thomas Cook customers pursuing personal injury claims.

The travel giant was facing “a large number of personal injury claims from former customers” according to the government’s website.

It said most claims would be treated as unsecured creditors and it was unlikely funds received from the sale of assets would be enough to compensate claimants.

Last week Chinese conglomerate and Thomas Cook’s largest shareholder before it collapsed, Fosun, agreed a deal to acquire the brand for £11 million.


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Hays Travel acquired  the licence to occupy all of Thomas Cook’s 555 shops for around £6 million.

A statement on the government’s website published today said: “Thomas Cook was managing a large number of personal injury claims from former customers.

“As these claims are not covered by insurance they will be treated as unsecured creditors in the liquidation. It is very unlikely that sufficient funds will be realised from the sale of assets to make payments against these claims.

“The government has announced that it intends to develop a statutory compensation scheme to provide for those customers facing the most serious hardship as a result of injuries or loss of life.

“Further details of the scheme, including eligibility, will be announced when Parliament returns after the general election.”