Freedom Direct fails
Online travel company Freedom Direct Holidays has ceased trading.
The firm, which had around 100 employees, had failed to renew its ATOL licence earlier this month.
The CAA estimates that 200 customers are currently abroad and there are around 9,000 to 10,000 more with pre-booked holidays.
It is estimated the total cost to the CAA’s Air Travel Trust Fund will be around £2 million. The company’s ATOL bond was for £750,000.
A CAA spokesman said it was too early to calculate the exact cost to the fund, but said the £2 million estimate was a "sensible one".
He said the case was complicated because the main part of Freedom’s business was as a retail agent, not as a tour operator, so those retail customers will not be ATOL protected.
In addition, anyone who has booked in the last three weeks, since the company’s ATOL expired, are also not covered.
The Newcastle-based business also traded as Freedom Direct, holidaysyoulike.co.uk, holidaysyoulike.com, hotsunholidays.co.uk, and snowdeals.co.uk.
On its websites today, it has posted a notice advising customers of the failure.
"We would like to apologise for any inconvenience caused to our customers and to thank the many people who have booked holidays with us over the last 12 years," said CEO Martin Jones.
Customers who have booked holidays are advised to submit a claim to the Civil Aviation Authority.
Customers requiring further assistance should contact CEGA, ABTA’s claims handling partner, tel 01243 621500 or email [email protected].
By Bev Fearis
Bev
Editor in chief Bev Fearis has been a travel journalist for 25 years. She started her career at Travel Weekly, where she became deputy news editor, before joining Business Traveller as deputy editor and launching the magazine’s website. She has also written travel features, news and expert comment for the Guardian, Observer, Times, Telegraph, Boundless and other consumer titles and was named one of the top 50 UK travel journalists by the Press Gazette.
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