Another Travel Company Fails

Following last summer’s demise of XL Airways and latterly Goldtrail, another UK tour operator has gone into insolvency proceedings.

Birmingham based firm Sun4U have announced they have ceased trading on their website, leaving around 1200 holidaymakers once again stranded abroad, sparking fears more travel companies could be about to face the same fate.

A message posted on the company's website said, "Sun4u Limited has ceased trading. For further information please contact the Association of British Travel Agents’ claim handlers CEGA on 01243 621 500."

Sun4U are one of many who fell victim to the totally unforeseen ash cloud disaster earlier this year.  Travel giant TUI, owner of Thompson and Thomas Cook, issued a profit warning to the industry yesterday, after they announced the ash cloud had cost them around £105m.

The travel industry was already facing a difficult year before the cloud after the Met office’s announcement earlier this year that the UK was in for a ‘Barbeque Summer,’ prompting people to opt to stay home and save money.

Vernon Dennis, partner at law firm Howard Kennedy has said, "With the economic outlook for consumers remaining so uncertain it could be anticipated that due to falling demand and the emergence of the 'staycation' there would be some business failures in the travel sector come the autumn.

Sun4u is thought to have employed about 40 staff at its call centre, with a turnover of about £20m and approximately 50,000 customers a year.

Travel organisation ABTA has advised that anyone who has booked a package holiday must contact the Civil Aviation Authority (CAA) or contact the supplier named on the invoice.

The CAA said measures would be put in place to ensure those abroad with Atol packages can come home but it warned those who used Sun4U as a travel agent simply to book flights might have trouble returning.

Posted at 04:48PM Aug 16, 2010 by Marc Stenton in Insolvency  |  Comments[0]