The future of Travelzest hangs in the balance after its shares were suspended from trading.
The company admitted it could not repay money owned to its main lender.
The announcement came after a demand from Elleway Acquisitions Ltd for the immediate repayment of all money owed by the company.
“At this time the company is unable to repay the monies owed to EAL and consequently there is a material uncertainty around the company’s short-term working capital position,” Travelzest said.
Shares were suspended from trading on the Alternative Investment Market in London.
Today’s development followed a series of weekly reprieves provided by the lenders for the return of an unspecified amount of money owed.
Travelzest, which runs online businesses in Canada having closed UK operations, said it will make further announcements as appropriate.