Glasgow-based David Urquhart Sky Travel has gone into administration two months after its sister business, coach tour operator David Urquhart Travel, entered a Company Voluntary Arrangement (CVA).

David Urquhart Sky Travel was an Atol holder and Abta member which had been trading for almost four decades.

It’s understood there are no customers overseas. The number of forward bookings is expected to be small.

The winding up of coach operator David Urquhart Travel was announced on May 4 when the directors applied for a CVA, often referred to as pre-pack administration.

This is often a prelude to a business restructuring after writing off debts with the agreement of most creditors.

However, David Urquhart Travel confirmed it would use the process to refund customers as part of an orderly winding down.

Announcing the CVA, the company said: “The ongoing coronavirus crisis has had a dramatic impact on all business sectors but especially within travel and tourism.

“At present it is impossible to establish when coach tour and hotel operations will return to normal operating capacity.

“This is not a decision which has been taken lightly. However, we have to be responsive to the significant challenges the company would face if we were not to take decisive action.”

It advised customers that refunds would “take around two months to complete” from May 18, but insisted: “This decision does not in any way affect David Urquhart Sky Travel which provides foreign travel, cruises , city breaks. This company will continue as normal.”

The firm operated a trust account to protect customers’ money.

David Urquhart Sky Travel also traded as davidurquhart.com, davidurquharttravel.co.uk, and skytravelholidays.

The CAA confirmed the failure and promised details of how consumers could claim refunds would be made available next week.