Holiday firm's collapse hits thousands due to take Christmas breaks

Up to 40,000 holidaymakers, including many who booked Christmas and New Year trips, have had their breaks cancelled after a tour firm went into administration.

Travelscope, which specialises in cruises and coach tours, made the announcement after suffering cash-flow problems.

It is not known how many holidaymakers will be affected, but the company regularly charters the cruise ship MV Van Gogh, which carries 450 passengers.

Around 270 employees are expected to lose their jobs at the company, which is based in Brockworth, near Gloucester.

All customers who have booked through the firm will be entitled to full refunds, backed by the Association of British Travel Agents.

But their holidays will not go ahead. Those currently away will have the remainder of their trip honoured.

Shocked staff, some in tears, left the offices after being paid up until the end of the month. It is understood that some of the wage bills were met by the directors out of their own pockets.

Managing director Richard Ford said the collapse of the firm - which had been operating for 15 years - was due to two "disastrous" cruises.

On one, in the spring of 2006, a vomiting virus struck and the trip had to be cancelled.

Then a passenger on a cruise to New York fell and died, which caused further financial problems and a cancellation of bookings.

Customer Clive Budgen, who had booked a Rhine cruise, said: "I'm going to get my money back, but what worries me is not having anywhere to go." A woman who had booked a trip to Bavaria said: "This is a huge shock. I was in the Travelscope offices on Wednesday and I was given no hint that anything was wrong."