Two holiday companies have collapsed into administration sparking fears for people's bookings and trips away.
Discounted hotels website LateRooms, along with York-based holiday company Superbreak, ceased trading and parent company Malvern Group said it intended to appoint administrators.
Last month Malvern appointed KPMG to undertake an accelerated sales process after Cox & Kings India, which owned a 49 per cent stake in Malvern, defaulted on loan repayments.
The default resulted in the withdrawal of any further funding for Malvern, the company said in a statement on Thursday.
Malvern was unable to secure interim funding from banks, therefore the company ran out of cash before a sale could be completed despite "interest from potential purchasers".
What have Malvern said?
On Thursday, the company said that LateRooms, Superbreak and Malvern Travel Technology were unable to continue on a solvent basis and had ceased trading.
The confirmation came less than 24-hours after Superbreak - the short break specialist - announced a new partnership with budget hotel chain easyHotel, promising "11 new affordable hotels".
Both firms were still trading - and accepting bookings - in the hours before collapse.
Hugo Kimber, Malvern executive chairman, said: "This is a devastating blow for all of our wonderful employees who have invested so much time and effort into building Malvern, its brands and trips technology platform.
"This is equally difficult for all our suppliers, partners and customers who will be impacted by this news. To be so close to delivering our goal of an integrated, dynamic and commercially successful business, that could provide significant value through its innovative products, is heart-breaking."
What can you do if you have been affected?
Guy Anker, deputy editor of MoneySavingExpert.com said: "This is a nightmare for holidaymakers during peak season but there are ways to get your money back if your plans have been hit.
"If it’s a package holiday it’ll be protected under the ATOL or ABTA schemes. If it’s not a package, it’s worth putting in a claim with your card company as you may be able to get your money back.
"You may have paid for extras such as excursions or car hire. If you can’t travel, check if you can cancel them. If not, check if you can claim on your travel insurance – but be warned many cheaper policies may not cover you where a firm ceases trading."
What are your rights?
If you've got a trip booked with either Laterooms or Superbreak, make sure you know your rights - including how to find out if your trip is cancelled and your rights if you're currently on holiday.
Your first point of call should be The Association of British Travel Agents (ABTA) which has issued the following advice (see below) for travellers affected by Thursday's announcements.
However, if you've booked a hotel only, or through an agent that's now refusing to co-operate, you should contact your bank immediately.
James Walker at Resolver.co.uk said: "When businesses go bust, speed is of the essence so if your trip has been cancelled, call your bank now and ask them to 'charge back' any money you've paid on your debit card. Failing that, you might be able to claim the costs back if you paid by credit card under Section 75 guidelines.
An ABTA statement said: "If you have booked a holiday with Superbreak, we regret that all bookings that have not departed may be cancelled. The vast majority of holidaymakers' travel arrangements will be covered through one of a number of different types of financial protection,"
"If you are currently on a Superbreak holiday, you should be able to continue with your trip as planned.
"If you made your booking through a travel agent or other travel company - not directly with Superbreak - then you will need to contact that company for advice and guidance."
If your holiday includes a flight, you will need to contact the CAA directly to make a claim for your booking.
Mr Walker said: "If you have booked a holiday which includes accommodation and travel (excluding flights) and you paid by credit or debit card, you should be able to claim through your credit card company." This will be under Section 75 .
"Your credit card company may ask you for a referral letter from ABTA, so to help you with your claim, you can download a letter here , if you paid by debit card please click here .
"If you paid Superbreak by any other means, you will need to make a claim from ABTA, you can do this through this link: abta.com/claims ."
If you booked an accommodation only holiday through Superbreak, your booking won't be covered under ABTA.
Instead, you'll again need to submit a claim through your credit or debit card company.
Anyone experiencing difficulties can contact ABTA on 020 3117 0553.
