The aircraft maintenance arm of Thomas Cook is to shut two months after the travel group collapsed.

Thomas Cook Aircraft Engineering is being wound down as part of the liquidation of the group and will close, the Insolvency Service confirmed yesterday (Thursday).

The Manchester airport-based aviation business was taken over as part of the £1.1 billion merger with MyTravel in 2007.

A small number of the 400 workers at the unit had been retained on a temporary basis until all Thomas Cook aircraft were returned.

KPMG, which was appointed special manager of the maintenance business, is to provide staff with information they need to claim redundancy payments, the government said.

It was also announced that Thomas Cook employees who have been off sick for more than six months cannot expect to receive any more payments from the company.

Staff were told to speak to insurance companies about future payments.

The Official Receiver is looking into missing payments that some employees were expecting in September.

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