Administrators from accountancy firm Grant Thornton have been called into Travelzest after the company failed to meet demands for repayment of loans.
The company said it had been unable to secure additional funding and is unable to continue to trade as a going concern.
“The decision to request the appointment of administrators was taken after careful consideration and having explored all options to raise additional capital,” Travelzest said.
At the same time a company owned by lender Elleway Acquisitions – Aldenham Canada – has purchased all of the material assets of the company’s Canadian subsidiaries.
The company’s brands in Canada are itravel2000 and The Cruise Professionals.
“The proceeds from the disposal of the Canadian subsidiaries are not expected to be sufficient to discharge the company’s remaining secured and unsecured creditors and it is therefore highly unlikely that shareholders will receive any return for the shares they hold,” Travelzest said.
“The result of this transaction is that customers and suppliers of the subsidiaries will trade with Aldenham Canada with immediate effect.”