Holidaymakers who booked Christmas getaways with a collapsed Midland tour firm have been guaranteed full refunds.

Thousands of sunseekers had their festive plans wrecked when Travelscope went into administration, leaving families across the country fearful.

The Gloucestershire company ceased trading on Friday, and announced that up to 200 jobs would be lost at its headquarters.

Holidays due to be taken by customers across the UK have been cancelled with immediate effect.

But more than 460 passengers currently on the ship MV Van Gogh, due to arrive back in Falmouth on January 4, will finish their Christmas cruise uninterrupted.

Because the company is both ABTA and ATOL bonded, all customers will receive full refunds, it was confirmed this weekend, although the seasonal holiday break could delay claims.

June Dolphin, from Stroud, Gloucestershire said she and her husband were devastated to have missed out on their Christmas break.

"We were going to have a sleigh ride on Christmas Day and a steam train ride on Boxing Day," she said.

The collapse of the company was blamed on cash flow problems partly resulting from compensation claims after an outbreak of the Norovirus bug on board the Van Gogh last year.

Travelscope, which deals primarily in cruises and coach trips, including a number booked through The Birmingham Post's Reader Travel service, said on its website: "All trading activities are currently being suspended and no further holiday bookings are being taken."

Last night, the Association of British Travel Agents said claim forms would be sent out and full refunds offered.

For more information call: ABTA - 0207 637 2444. Reader Travel - 02476 500396. Civil Air Authority - www.caa.co.uk