Teletext Holidays and Alpharooms have collapsed into administration in a move that will affect millions of customers.
Truly Holdings, which owns both firms, has ceased trading, according to the government's insolvency database, reports The Mirror.
There are still tens of thousands of holidaymakers still waiting on refunds from the start of the Covid outbreak and up to 4,000 holidaymakers will be affected by the administration.
READ MORE: UK holidaymakers will have to pay to enter EU in new 2022 travel rules
It comes after the Travel Trust Association (TTA) revoked the memberships of Teletext and Alpharooms on Friday on the back of financial concerns.
It is understood that Robert Cundy and Bijal Shah of Edge Recovery and Insolvency Practitioners were hired by Truly Holding a week ago to manage the company's closure.
Entering liquidation means the company has effectively run out of money - any remaining funds will now be used to pay the people it owes money to.
The TTA, a trade body, confirmed that directors at Truly Holdings, which owns both firms, “sought the appointment of liquidators” after the company was pulled up by the UK’s competitions watchdog for failing to pay out millions in refunds for holidays cancelled due to pandemic restrictions.
It is also understood that Teletext Holidays is no longer taking new bookings, although it will honour existing holidays.
Any future bookings made via Alpharooms will not be fulfilled.
What it means for you
If you’re currently on a Teletext holiday, your trip should not be affected.
The TTA said it has contacted all suppliers and requested that all bookings remain in place.
Flights are also ATOL protected, meaning your return flight home will still go ahead.
All Teletext package holidays will continue as planned.
If the firm goes bust, the TTA says you will still be able to go on your holiday as normal, or receive a full refund, which will be covered by ATOL.
If you have booked accommodation with Alpharooms, however, this will no longer be valid.
However, you can claim for a refund. The TTA said all customers with an Alpharooms accommodation-booking have been contacted and offered a refund.
To claim your refund for your Alpharooms booking you will need to file a refund request and provide proof of payment and any reference numbers.
The TTA said refunds could up to 12 weeks to be processed.
I'm still waiting for a Covid refund
The CMA is in the process of taking Truly Holdings to court over a failure by the company to fully refund those who had holidays cancelled due to the pandemic.
The CMA said it continues to monitor the situation and will take action to claw back the money owed by Truly Holdings.
The watchdog said: "We are monitoring the situation and are seeking further clarification. While these reports will concern people awaiting refunds, we will continue to take all possible action to get people the money they are owed.”
A claims process for all customers awaiting refunds will be put in place shortly by the TTA.
You may also be able to claim a refund if you paid on credit card, via Section 75.
Alternatively, if you paid on a debit card, speak to your bank as you may quality for a Chargeback claim – this is essentially when the transaction is reversed.
You can contact the TTA directly with any questions about your booking via trulytravelbookings@tta.co.uk.
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
