Former Palmer & Harvey bosses will be forced to appear before the same Work and Pensions Committee that attacked BHS and Sports Direct over their employment practices.

The hearings are likely to focus on a 2008 management buyout, large payouts and loans to senior staff, and the company’s £80m pension deficit.

Former CEO Christopher Etherington received an interest-free loan from the company to buy shares. The terms of the loan were later changed so that Etherington did not have to repay the loan when P&H went under.

If the terms were not changed, the loan money would have helped to repay those owed money by the failed company including suppliers, retailers and employees.