Funway Holidays is to cease trading on September 30 after 27 years.

The tour operator, which specialised in the US and the Caribbean, said it had made the “difficult decision” to close Funway Holidays International because of the ongoing impact of Covid-19.

No new bookings or rebookings will be accepted from July 7. All bookings departing on or after September 1 have been cancelled, all deposits will be refunded in full and all refund credit notes paid in cash.

The operator, licensed by Atol to carry 4,530 passengers a year, said it was contacting all travel agents with live bookings.

In a statement it said: “The ongoing impact of Covid-19 has been so severe that the difficult decision has been made to close the business.

“Rest assured, we will honour our obligations and ensure a smooth wind down of our company over the next three months.”

The operator also thanked agents for their support, saying: “We would like to say a huge thank you to all our wonderful agent partners. Whilst the Funway journey is coming to a close, we hope all of our partners emerge from this crisis and enjoy a most prosperous future.”

Sales and marketing director Nick Talbot said: “It’s an incredibly sad day for the Funway team and our closure reflects just how severely the travel industry is being impacted by Covid-19. I would like to pay testament to our truly incredible team who have demonstrated unwavering professionalism and positivity in the most challenging of times.”

Vice president and general manager Carla Van Der Giesen added: “I can only echo Nick’s comments. The closure of Funway International LLC is a decision that has not been taken lightly.

“I feel privileged to have been able to lead our fantastic team that have represented the Funway brand with continuous passion and devotion. We leave behind a legacy of truly memorable holidays that our team has helped create for our many customers over the course of several decades.