Teletext Holidays and Alpharooms go into liquidation with thousands of customers owed refunds
TELETEXT Holidays and Alpharooms have collapsed into liquidation while still owing thousands of customers refunds.
Truly Holdings, which owns both firms, has ceased trading, according to the government's insolvency database.
Entering liquidation means the company stops trading and its remaining money and assets are handed out to claimants.
It usually happens when a company is insolvent, meaning it doesn't have enough cash to meet its payments and debts.
Around 4,000 consumers are reportedly impacted by the collapse, according to
MSE reported this week that Edge Recovery has been appointed as insolvency practitioner to the company.
It comes after the Travel Trust Association revoked both firm's memberships last November, citing financial concerns.
Both companies struggled during the pandemic and were slammed for failing to refund customers for holidays cancelled due to Covid.
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In May, Teletext Holidays promised to refund £7million to customers who were still owed cash from coronavirus cancellations by August 31, after thousands complained.
But in October it faced court action over claims it had not done enough to refund customers for cancelled holidays during the Covid crisis.
Consumer watchdog the Competition and Markets Authority (CMA) launched the legal battle against the company to secure refunds for customers.
What does the collapse mean for holidaymakers?
If you're on a Teletext holiday then the TTA told MSE that your trip won't be affected and you should be able to check-in for your return flight as normal.
It is also believed that all Teletext package holidays will still go ahead.
The bookings have been re-contracted with , you can contact [email protected] if you need more information.
Customers with Alpharoom accommodation bookings should get a refund.
If your holiday was cancelled due to Covid, you need tothrough the Travel Trust Association.
To complete the claims process, proof of payment made to Truly Travel is required for both the deposit and the balance paid.
However it's not clear whether refunds will go ahead as when companies are liquidated funds are first used to pay of its debts.
The Sun has asked Teletext Holidays and the Travel Trust Association what the collapse means for people whose holidays were cancelled - we'll update this page when we have all the details.
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If you used a credit card to book your holiday you might be able to get your money back.
Section 75 is a consumer protection right, meaning your credit provider will reimburse you if things go wrong with something you bought using credit.
The goods or service you bought must have cost over £100 and not more than £30,000.
If you used a debit card, you might be able to get your cash back too.
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Chargebacks are granted in a number of scenarios, including where you have not received what you have paid for.
Get in touch with your card provider to see if they'll give you a refund.