Diamond Shortbreak Holidays Ltd has ceased trading due to “financial difficulties”.
The operator has 7,000 forward bookings comprising around 16,000 passengers.
The company, which includes The River Cruise Line, specialises in coach holidays and rail breaks and has an Atol licence for 962 passengers.
Last night the company’s website said it was experiencing “technical difficulties” and agents said they were unable to get through to the operator on the phone.
A statement from the company said: “It is with deep regret that Diamond Shortbreak Holidays Ltd., trading as Diamond Holidays, Diamond Rail Holidays and The River Cruise Line is in the process of going into administration.
“In total there are just under 7,000 current holiday bookings. All passengers who were due to travel with the company have either already been contacted or will be contacted shortly. As the company is a fully bonded member of Abta and Atol monies paid by our customers are protected.”
Diamond Shortbreak Holidays is based in Market Harborough, Leicestershire and has been operating holidays inthe UK and Europe for 19 years.
It has 52 UK based staff members and 26 based overseas.
A statement from Abta said: “Abta member Diamond Shortbreak Holidays Ltd has ceased trading today due to financial difficulties.
“This is clearly going to be very worrying for the thousands of holidaymakers who have booked with the company. Although unfortunately we have to confirm that their holidays are cancelled, the company’s non-flight based package holidays, such as coach or rail trips, are fully protected through Abta.
“These kind of trips formed the majority of the company’s business, and customers with one of these bookings are advised to go to abta.com where they can start the process of claiming a refund..
“We estimate there are almost 7,000 forward bookings protected by Abta, comprising approximately 16,000 passengers. Everyone booked on packages will get a refund on the money they have paid, in some cases this may be through their bank or credit card company and we will give them a letter, which will make any claim straightforward.
“Customers who need more help can contact our claims team on 0203 758 8743. A small number of customers with flight based holidays will be protected through the ATOL scheme and should contact the CAA.”