BIRMINGHAM-based travel company Sun4u has collapsed leaving around 1,200 people abroad facing holiday chaos.
The firm announced it had ceased trading on its website. Its demise will spark fears more travel companies could meet a similar fate.
The firm is understood to have been a victim of the ash cloud crisis earlier this year.
According to reports, some 40 members of staff at its call centre were informed of the collapse yesterday morning.
A statement on the company’s website read: “Sun 4 U Limited has ceased trading as of August 11, 2010, at 2100hrs. For further information please contact ABTA’s claim handlers CEGA on 01243 621 500.”
It is unclear how holidaymakers currently abroad – most of them in Spain – will be repatriated.
The collapse of Sun4U follows the recent failure of tour operator Goldtrail Holidays.